Financial Markets Daily Report
11 June 2021

Yesterday, investors traded with caution and did not get agitated with the news coming from the US inflation report and the ECB monetary policy meeting. The VIX index declined and shares fell modestly in the euro area and increased in the US (the S&P 500 reached a new all-time high). Sovereign yields edged down in both regions.

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  • Yesterday, investors traded with caution and did not get agitated with the news coming from the US inflation report and the ECB monetary policy meeting. The VIX index declined and shares fell modestly in the euro area and increased in the US (the S&P 500 reached a new all-time high). Sovereign yields edged down in both regions.
  • US CPI inflation spiked in May to 5.0% (Bloomberg consensus: 4,7%; April: 4.2%), intensifying overheating concerns. Nevertheless, the increase reflects, mainly, base effects and supply disruptions that should fade away gradually throughout the year.
  • In the euro area, the ECB kept its monetary policy tools unchanged (depo: -0,5%; APP: 20bn monthly; and PEPP: 80bn monthly at least during 3T) despite being more optimistic on the economic outlook. GDP growth was revised up by 0.6pp for 2021 and 2022 to 4.6% and 4.7%, respectively, while 2021 inflation forecast was raised from 1.5% to 1.9%.
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