Financial Markets Daily Report11 July 2023
Investors started the week trading with a cautious mood, still digesting the mixed US employment report released on Friday and awaiting tomorrow's key CPI inflation data. Also, comments from San Francisco Federal Reserve President Mary Daly pointed to further interest rate increases even if signaling the end of the hiking cycle is nearing.
- Investors started the week trading with a cautious mood, still digesting the mixed US employment report released on Friday and awaiting tomorrow's key CPI inflation data. Also, comments from San Francisco Federal Reserve President Mary Daly pointed to further interest rate increases even if signaling the end of the hiking cycle is nearing.
- In this context, yields on sovereign bonds edged modestly up in the euro area while declining more markedly in the US. In stock markets, equities registered moderate advances on both sides of the Atlantic. In FX markets, the US dollar weakened against most of its peers and the euro fluctuated around $1.10.
- In commodity markets, the price of the European natural gas dropped markedly towards 30€/MWh, a level not seen since early June and similar to the pre-war levels.
- Today the focus will be on the Germany and euro area ZEW survey for July.