Financial Markets Daily Report 08 July 2022
Risk appetite extended across markets on Thursday, as fears about inflation and monetary tightening eased following soft labour data in the US (weekly jobless claims rose to the highest level since January). Meanwhile, news reported that China’s government is considering more fiscal support by raising by $220bn the issuance of special bonds.
- Risk appetite extended across markets on Thursday, as fears about inflation and monetary tightening eased following soft labour data in the US (weekly jobless claims rose to the highest level since January). Meanwhile, news reported that China’s government is considering more fiscal support by raising by $220bn the issuance of special bonds.
- The accounts of the June ECB meeting also showed a more decisive approach within the Governing Council in taming elevated inflation, noting that some members were in favour of more aggressive interest rate hikes in July.
- In this context, both stocks and sovereign debt yields edged higher across the board, while oil prices recovered some of the recent declines. In FX markets, the British pound rallied against its peers after the resignation of Boris Johnson as UK PM. The USD continued to trade in recent lows, nearing parity against the EUR.
- Today, the key focus will be on the employment report for June in the US.