Financial Markets Daily Report 23 June 2023
The hawkish stance of central banks in advanced economies continued to center the stage in yesterday’s session. On the one hand, the Bank of England surprised with a 50 bp hike (25bp were expected by the consensus) to set the official interest rate at 5%, the highest level since 2008.
- The hawkish stance of central banks in advanced economies continued to center the stage in yesterday’s session. On the one hand, the Bank of England surprised with a 50 bp hike (25bp were expected by the consensus) to set the official interest rate at 5%, the highest level since 2008.
- On the other hand, Jerome Powell confirmed that the pause of interest hikes in June responded to a change in the speed of tightening. He continues to see further rate increases ahead, although at a careful pace.
- In this context, yields on sovereign bonds rose on both sides of the Atlantic. In stock markets, equities declined in Europe and in emerging economies while increasing in the US. Elsewhere, commodity prices fell, with the Brent fluctuating below $75 a barrel and European natural gas around 34€/MWh.
- Today the focus will be on the June flash PMIs for the main economies.