Financial Markets Daily Report11 May 2022
In yesterday's session, sentiment recovered somewhat as investors continued to assess the inflation and growth outlook amid several central bank officials’ comments.
- In yesterday's session, sentiment recovered somewhat as investors continued to assess the inflation and growth outlook amid several central bank officials’ comments.
- Regional members, including Loretta Mester and John Williams, reinforced Jerome's Powell signal to hike rates by 50bp in June and July but did not rule out a 75bp hike later. In the ECB, the Bundesbank president Joachim Nagel reiterated that he would support ending APP net purchases in late June and hiking rates in the July meeting.
- In this context, stocks in both sides of the Atlantic recovered some of the ground lost in the previous days and yields on sovereign bonds edged markedly down in the euro area.
- Today the focus will be on the US CPI data for April, which is expected to edge down in yoy terms from March (headline 8.5%; core 6.5%).