Financial Markets Daily Report09 May 2023
Investors started the week trading with a more cautious approach, with sentiment negatively impacted by weak industrial data in Germany (–3.4% m/m in March, well below expectations) and signs of tightening credit conditions in the US, according to the Fed’s Senior Loan Officer Opinion Survey.
- Investors started the week trading with a more cautious approach, with sentiment negatively impacted by weak industrial data in Germany (–3.4% m/m in March, well below expectations) and signs of tightening credit conditions in the US, according to the Fed’s Senior Loan Officer Opinion Survey.
- In particular, the Fed reported banks tightened credit standards in Q1 2023 while loan demand eased from both consumers and businesses. From the ECB, Philip Lane said inflation will slow but momentum remains high for now.
- In this context, sovereign bond yields rose while stock indices closed with mixed results. In addition, the USD appreciated modestly against peers.
- Today, US President Joe Biden holds talks with Republican officials on the country’s debt ceiling. This morning data showed goods exports in China rose by 8.5% y/y in April while imports fell by 7.9% y/y.