Financial Markets Daily Report26 June 2023
Investors closed the week with yet another risk-off session, as recession fears returned to the fore following weaker-than-expected economic survey data across advanced economies.
- Investors closed the week with yet another risk-off session, as recession fears returned to the fore following weaker-than-expected economic survey data across advanced economies.
- The composite PMI in the eurozone edged down from 52.8 in May to 50.3 in June, driven by a further decline in the manufacturing sector and a notable slowdown in services. In the US, the composite PMI eased from 54.3 to 53.0.
- Sovereign bond yields declined across the board after the release of the data, while equity prices extended their weekly losses. In addition, the USD appreciated modestly against its peers, trading below 1.09 against the EUR. Commodity prices also went down.
- The focus turns to inflation this week, with the release of the June flash HICP in Italy on Wednesday, in Germany and Spain on Thursday, and for the eurozone aggregate on Friday. Today, the IFO survey in Germany for June is published.