Financial Markets Daily Report07 September 2023
Risk-off appetite prevailed among investors yesterday. In the eurozone, a raft of negative data releases weighed on stocks, as both retail trade across the region and German factory orders surprised on the downside.
- Risk-off appetite prevailed among investors yesterday. In the eurozone, a raft of negative data releases weighed on stocks, as both retail trade across the region and German factory orders surprised on the downside.
- Despite the economic weakness, several comments from ECB officials hinting at further interest rate hikes at upcoming meetings sent sovereign bond yields up.
In the US, however, ISM data on the services sector surprised on the upside and showed continued price pressures on inputs, which sent investors’ expectations of interest rates higher, pushing bond yields up and stocks down.
- In this context, the euro remained flat against the dollar, but appreciated against most other currencies. The dollar also appreciated overall, extending its multi-week run of strength.