Financial Markets Daily Report13 July 2022
In yesterday’s session, investors’ concerns of a decelerating economy spiked after worse-than-expected sentiment data in Germany and the euro area and comments from Richmond Federal Reserve President Thomas Barkin.
- In yesterday’s session, investors’ concerns of a decelerating economy spiked after worse-than-expected sentiment data in Germany and the euro area and comments from Richmond Federal Reserve President Thomas Barkin.
- In particular, Barkin said he sees signs of softening in economic activity while expecting inflation to come down «not immediately, not suddenly and not predictably».
- In this context, stock indices fell in the US and were mixed in the euro area. In fixed-income markets, sovereign yields declined in both sides of the Atlantic, particularly so in Europe, and peripheral spreads ticked up. Elsewhere, Brent oil prices declined below $100 per barrel amid recessionary fears and the US dollar reached almost parity vs the euro.
- Today, the focus will be on June CPI data for the US, for which the Bloomberg consensus expects a 0.2pp increase to 8.8% y/y. Earlier this morning INE confirmed June CPI inflation figure for Spain at 10.2% y/y.