Financial Markets Daily Report 15 July 2022
In yesterday's session, investors traded with a risk-off mood following the downward revision of the European Commission forecasts. While 2022 GDP for the euro are was barely revised to 2.6%, 2023's changed from 2.3% to 1.4%. The EC revised its inflation forecasts from 6.1% and 2.7% to 7.6% and 4.0% for 2022 and 2023, respectively.
- In yesterday's session, investors traded with a risk-off mood following the downward revision of the European Commission forecasts. While 2022 GDP for the euro are was barely revised to 2.6%, 2023's changed from 2.3% to 1.4%. The EC revised its inflation forecasts from 6.1% and 2.7% to 7.6% and 4.0% for 2022 and 2023, respectively.
- Stock indices fell in the euro area while US equities closed above yesterday's session lows, following the comments of usually hawk Fed officials in favor of a 75bp hike in the July meeting instead of the 100bp priced in by markets.
- In fixed-income markets, euro area peripheral spreads widened following Italian politics' events. Sergio Matarella rejected Mario Draghi's resignation as prime minister, who, to avoid snap elections, can test the government coalition in a new confidence vote early next week.
- Released this morning, China's Q2 GDP fell by 2.6% q/q, more than expected by the Blomberg consensus (-2.0%).