Financial Markets Daily Report17 July 2023
Investors closed the week extending their appetite for risk, albeit consolidating and taking profits after the rebound recorded across asset classes in the previous sessions. Sentiment was also lifted by a positive start of the Q2 corporate earnings seasons, with better-than-expected results for the reporting large US banks.
- Investors closed the week extending their appetite for risk, albeit consolidating and taking profits after the rebound recorded across asset classes in the previous sessions. Sentiment was also lifted by a positive start of the Q2 corporate earnings seasons, with better-than-expected results for the reporting large US banks.
- On the data front, consumer confidence in the US improved notably in July (72.6 after 64.4) although with some uptick in inflation expectations (+0.3 pp to 3.4% for the 1-year ahead).
- In this context, stocks moderated their advances to close with mixed results while sovereign bond yields edged up, more notably in the US. The USD depreciated modestly against peers while commodity prices were little changed.
- This morning, data showed China GDP rose by 0.8% q/q in Q2 after 2.2% in Q1, below expectations. Among the key data releases later this week: retail sales in the US (Tue.) and CPI inflation in both the eurozone and the UK (Wed.).