Financial Markets Daily Report
09 June 2023

Investors traded with a more positive tone on Thursday, taking on board signs of cooling in the US labour market to adjust downwards their expectations for policy interest rates, ahead of next week's monetary policy announcements. 

FMDR
  • Investors traded with a more positive tone on Thursday, taking on board signs of cooling in the US labour market to adjust downwards their expectations for policy interest rates, ahead of next week's monetary policy announcements. 
  • On the data front, real GDP in the eurozone was revised downwards to show a 0.1% q/q decline in Q1, confirming the euro area entered a technical recession last quarter. Separately, initial jobless claims in the US increased more than expected last week, reaching the highest level since October 2021.
  • In this context, sovereign bond yields fell, erasing some of the gains recorded in previous sessions. Equity prices closed mostly higher while the USD depreciated modestly against its peers, nearing 1.08 against the EUR. The Turkish Lira stabilized against the USD on the back of alleged support from State lenders.
  • Data released this morning showed inflation in China remained subdued in May (CPI: 0.2% y/y; PPI: -4.6% y/y).
     
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