Financial Markets Daily Report 20 June 2023
In the first session of the week, investors traded cautiously in the absence of relevant economic data releases while continuing to digest last week's Fed and ECB monetary policy meetings. With the US markets closed due to a holiday, attention centered to messages from ECB officials.
- In the first session of the week, investors traded cautiously in the absence of relevant economic data releases while continuing to digest last week's Fed and ECB monetary policy meetings. With the US markets closed due to a holiday, attention centered to messages from ECB officials.
- With a 25bp rate hike already priced in for the July meeting, some members, including Phillip Lane, said that there is no need to pre-commit with further rate hikes beyond summer. On the other hand, Isabel Schnabel was more worried about inflation and said that the ECB should err on the side of doing too much rather than doing too little.
- In this context, yields on euro area sovereign bonds edged up and equity indices declined, also in the main emerging market's references. In commodity markets, the price of the barrel of Brent fell towards $76 and European natural gas hovered around 35€/MWh.