Financial Markets Daily Report03 July 2023
Investors ended the week on a brighter note than on Thursday. Market sentiment was boosted by encouraging data on inflation dynamics in the US and in the eurozone (despite a modest tick up in core inflation).
- Investors ended the week on a brighter note than on Thursday. Market sentiment was boosted by encouraging data on inflation dynamics in the US and in the eurozone (despite a modest tick up in core inflation).
- In this context, sovereign bond yields fell slightly in the eurozone, reversing some of Thursday’s sharp hikes, while US short-term yields extended their gains. Equities rose across the board, helping the main developed market indices to record gains for the first half of the year, in a stark contrast to their Chinese counterparts.
- On the other hand, natural gas in Europe rose on Friday, with the one-month future contracts advancing 5.5% to close the week above 37 €/MWh, on concerns that a hot summer will boost demand.
- The focus this week will be on activity data, with the final June PMI manufacturing reading due today, and the composite reading on Thursday. On Friday, German industrial production and US labour market data will be released.