Financial Markets Daily Report22 July 2022
In yesterday’s session, the ECB announcements centered the stage, with a 50bp hike that pushed interest rates off the negative territory and the unveiling of the Transmission Protection Instrument (TPI).
- In yesterday’s session, the ECB announcements centered the stage, with a 50bp hike that pushed interest rates off the negative territory and the unveiling of the Transmission Protection Instrument (TPI).
- The anti-fragmentation tool will prevent unwarranted spikes in sovereign spreads under certain eligibility criteria, without ex ante limitation on asset purchases and will be activated under the Governing Council discretion.
- Yields on the short maturities of the German sovereign curve increased, following the hawkish raise in ECB official rates, while falling on the longer maturities, due to the gloomy description of the scenario by president Lagarde. The Italian risk premium increased after Draghi’s resignation, which pushes the country to snap elections in autumn.
- Stock indices were mixed in Europe while increasein in the US and the euro strengthened modestly.
- Today the focus will be on July’s flash PMIs for the main advanced economies.