Financial Markets Daily Report04 July 2023
Investors started the week trading cautiously. Weak manufacturing sector surveys pointed to a cooling yet resilient economy but were not enough to completely dampen investors’ risk appetite.
- Investors started the week trading cautiously. Weak manufacturing sector surveys pointed to a cooling yet resilient economy but were not enough to completely dampen investors’ risk appetite.
- In the US, the ISM manufacturing PMI fell to 46.0, the lowest reading since May 2020, but price pressures at the factory gate continued to deflate. In the eurozone, the final reading of the June manufacturing PMI (43.4) came in below the preliminary one while, in China, the Caixin PMI for June beat expectations but edged down towards 50.5.
- Against this backdrop, stock indices managed to advance, with the German and French indices being the outliers. Chinese indices posted the larger gains, riding on the expectation that the recent monetary stimulus will soon be felt and boosted other emerging market indices.
- In fixed-income markets, sovereign bond yields rose across the board.