Financial Markets Daily Report07 July 2022
Investors continued to trade with cautious on Wednesday, taking on board mixed economic data and the hawkish signals in the minutes of the last meeting by the Federal Reserve. European natural gas prices continued to edge higher, despite the intervention by Norway’s government to end an energy workers’ strike.
- Investors continued to trade with cautious on Wednesday, taking on board mixed economic data and the hawkish signals in the minutes of the last meeting by the Federal Reserve. European natural gas prices continued to edge higher, despite the intervention by Norway’s government to end an energy workers’ strike.
- On the data front, the ISM services in the US edged down less than expected in June (from 55.9 to 55.3) but with the employment index falling to contractionary territory (< 50). Separately, in the accounts of the 14-15 June meeting, the Fed reiterated the need for aggressive rate hikes in coming months to rein in persistent inflationary pressures.
- In this context, the USD appreciated further against the EUR, stocks were mixed while sovereign bond yields went up in the US but fell across Europe. Oil prices continued to move down, dropping near 100 $/barrel for the Brent.
- Today, the key focus will be on the release of the minutes of the June monetary policy meeting by the ECB.