Financial Markets Daily Report26 July 2023
In yesterday’s session, investors weighed mixed signals from economic sentiment indicators in the US and in Germany. While the Conference Board consumer sentiment indices rose in July, signaling that private consumption might still have room to grow in Q3, the German IFO moderated.
- In yesterday’s session, investors weighed mixed signals from economic sentiment indicators in the US and in Germany. While the Conference Board consumer sentiment indices rose in July, signaling that private consumption might still have room to grow in Q3, the German IFO moderated.
- In this context, yields on sovereign bonds edged modestly up on both sides of the Atlantic and equities posted modest advances across the board. In energy markets, the price of the barrel of Brent and on European natural gas continued to increase and fluctuated above $83 and 32€/MWh, respectively.
- Today the focus will be on the US Federal Reserve monetary policy meeting, which is expected to deliver a 25bp interest rate hike to the 5.25%-5.50% target range. The communication is expected to maintain a somewhat hawkish bias (June’s dot plot signaled a further rate hike before year-end), although disinflation pressures intensified in June.