Financial Markets Daily Report23 August 2023
As investors await the Jackson Hole conference for some guidance on monetary policy, European sovereign bond yields fell across the board in Tuesday's session. Meanwhile US short-term references posted gains, boosted by Fed's Barkin hawkish remarks on how the current strong economy would allow for higher rates should inflation pick up.
- As investors await the Jackson Hole conference for some guidance on monetary policy, European sovereign bond yields fell across the board in Tuesday's session. Meanwhile US short-term references posted gains, boosted by Fed's Barkin hawkish remarks on how the current strong economy would allow for higher rates should inflation pick up.
- Major stocks indices rose yesterday, with the exception of S&P500, dragged down by financials, which fell after rating agency S&P lowered its outlook on five US regional banks citing "tough operating conditions". The move came after S&P's peer, Moody's, downgraded 10 mid-sized US banks earlier in August.
- In this context, the USD appreciated against its major peers, extending its gains for the month. In commodities, European natural gas benchmark TTF also extended its gains as heavy seasonal maintenance in Norway increased the concerns of investors, who were already spooked with potential strikes at an Australian producer.