Financial Markets Daily Report21 June 2021
Investors ended the week on a negative note, extending the losses after the change of tone by the Fed during the 15-16 June monetary policy meeting. In stock markets, the S&P 500 edged down by 1.3%, reaching a 4-week low. Future prices and the heavy losses during the Asian session point to further declines on Monday.
- Investors ended the week on a negative note, extending the losses after the change of tone by the Fed during the 15-16 June monetary policy meeting. In stock markets, the S&P 500 edged down by 1.3%, reaching a 4-week low. Future prices and the heavy losses during the Asian session point to further declines on Monday.
- In bond markets, long-dated US Treasury yields dropped markedly, as investors bet the Fed will start hiking rates sooner-than-expected (the benchmark 10-year US treasury yield reached 1.44%). This also reflected in a further strengthening of the USD versus the EUR (to 1.186, lowest since early April).
- The key data releases this week are the flash PMIs for June (Wednesday), the Ifo survey for June in Germany (Thursday) and the PCE inflation for May in the US (Friday). The Bank of England is also announcing policy decisions (Thursday) while a number of Fed officials are scheduled to deliver speeches during the week.