Financial Markets Daily Report07 June 2023
Investors traded with a more positive tone on Tuesday, weighting out signs of moderating inflation expectations with weak industrial data and looking ahead for next week’s monetary policy announcements by major central banks.
- Investors traded with a more positive tone on Tuesday, weighting out signs of moderating inflation expectations with weak industrial data and looking ahead for next week’s monetary policy announcements by major central banks.
- In particular, the ECB monthly survey showed consumer expectations for 12-month inflation in the eurozone eased from 5.0% in March to 4.1% in April. In Germany, industrial orders disappointed with a 0.4% m/m drop in April.
- In this context, sovereign bond yields ticked down in the eurozone core countries while remaining broadly unchanged in the US. Stocks recorded modest gains while oil prices went down. In FX markets, the Australian dollar appreciated against its peers after a surprising interest rate hike by the country’s central bank.
- Data released this morning showed industrial production in Germany rose by 0.3% m/m in April (consensus: 0.6%) while exports in China went down by 7.5% y/y (consensus: -1.8%).