Financial Markets Daily Report10 May 2023
Risk aversion returned to the fore during a volatile session on Tuesday, with weak trade data in China resurging fears of a global economic slowdown and as there were no clear progress during the first talks between Democrats and Republicans to try to resolve the US debt ceiling standoff. Today the focus turns to the US CPI inflation data for April.
- Risk aversion returned to the fore during a volatile session on Tuesday, with weak trade data in China resurging fears of a global economic slowdown and as there were no clear progress during the first talks between Democrats and Republicans to try to resolve the US debt ceiling standoff. Today the focus turns to the US CPI inflation data for April.
- From the ECB, Governing Council member Martins Kazaks said investors should not assume the central bank will end hiking policy interest rates as soon as July, as currently priced in financial markets.
- In this context, equity indices fell across the board, in Europe led by the real estate sector, which has been in investors radar after recent financial turmoil in a Swedish commercial developer. In the US, shares of regional banks also went down, after rebounding during the last two sessions.
- Elsewhere, sovereign bond yields ticked up while the USD appreciated against peers.