Financial Markets Daily Report03 May 2023
In yesterday's session, investors traded with a risk-off mood amid concerns on the US debt ceiling and clearer signs that the US labor market is cooling down. In particular, job vacancies in March declined by 400k to 9,590k, the lowest level since April 2021.
- In yesterday's session, investors traded with a risk-off mood amid concerns on the US debt ceiling and clearer signs that the US labor market is cooling down. In particular, job vacancies in March declined by 400k to 9,590k, the lowest level since April 2021.
- In the euro area, preliminary HICP inflation for April renewed concerns of sticky price pressures with headline inflation ticking up to 7.0% and core inflation ticking down only slightly (-0.1 pp to 5.6%).
- In this context, yields on sovereign bonds declined in Europe and more acutely in the US, where market expectations for the Federal Reserve interest rate path ahead was revised downwards, amid concerns on some US regional banks. In equity markets, stocks fell sharply across the board.
- Today the focus will be on the US Fed meeting, where a 25bp hike to the 5.00%-5.25% range is broadly expected.