Financial Markets Daily Report09 July 2021
In a volatile session, investors’ sentiment was clouded by disappointing labour data in the US (new jobless claims unexpectedly rose to 373k during the first week of July) and uncertainty about the evolution of the pandemic. In Europe, the ECB confirmed a decision to modify its inflation target to a symmetric 2%.
- In a volatile session, investors’ sentiment was clouded by disappointing labour data in the US (new jobless claims unexpectedly rose to 373k during the first week of July) and uncertainty about the evolution of the pandemic. In Europe, the ECB confirmed a decision to modify its inflation target to a symmetric 2%.
- In this context, stock prices fell in both sides of the Atlantic, with the S&P 500 recording its worst day since May and the main European indexes plummeting by 1-3%. In bond markets, the worsening expectations about global growth fueled a further decline in yields, with the benchmark US 10-year treasury falling below 1.3%.
- In commodities, oil price rose after data showed US crude inventories fell by 6.9 million barrels last week, above market expectations. Following the release of inflation data in China, which showed inflation eased in June for both the CPI (1.1% after 1.3% in May) and the PPI (8.8% after 9.0%), the focus will be on the ECB last meeting accounts.