Financial Markets Daily Report25 August 2023
Eurozone sovereign bond yields remained broadly flat In Thursday's session as investors awaited the Jackson Hole meeting, which started last night with mixed comments from ECB officials. Centeno advised caution on further hikes, as downside risks for the economy are materializing, while Nagel said it's 'much too early' for a pause.
- Eurozone sovereign bond yields remained broadly flat In Thursday's session as investors awaited the Jackson Hole meeting, which started last night with mixed comments from ECB officials. Centeno advised caution on further hikes, as downside risks for the economy are materializing, while Nagel said it's 'much too early' for a pause.
- US sovereign bond yields rose 5 bps. across the curve, after data releases showed a resilient economy, with weekly jobless claims falling below expectations, and capital goods orders edging up a meagre 0.1% in July. Two Fed officials said yesterday that the rate rising cycle may be over, although they did not completely rule out further hikes.
- Against this backdrop, the USD appreciated against its major peers while, in stock markets, most indices across the Atlantic fell, especially in the US, with Asian markets faring better. In commodities, European natural gas benchmark TTF fell sharply again, as the risk of a strike at a major Australian producer receded.