Financial Markets Daily Report07 July 2021
Financial markets ended the day with negative results, following the release of disappointing survey sentiment data in both the US (the services ISM fell to 60.1 in June from 64.0 in May) and in Germany (the ZEW sentiment indicator dropped from 79.8 to 63.3). In addition, industrial orders in Germany plummeted in May (-4% m/m).
- Financial markets ended the day with negative results, following the release of disappointing survey sentiment data in both the US (the services ISM fell to 60.1 in June from 64.0 in May) and in Germany (the ZEW sentiment indicator dropped from 79.8 to 63.3). In addition, industrial orders in Germany plummeted in May (-4% m/m).
- With this backdrop, stocks declined in both sides of the Atlantic, the USD strengthened against most advanced and emerging economies' currencies and 10-year sovereign bond yields fell (near 1.3% in the US, the lowest since February). Oil prices also fell modestly, erasing some the recent gains after the collapse of talks by OPEC+ countries.
- The economic calendar is light today after the release this morning of industrial production data in Germany for May (-0.3% m/m, against market expectations for a 0.5% upswing). Investors will also be watching the publication by the Fed of the minutes of its June meeting this afternoon.