Financial Markets Daily Report 28 June 2023
Investors' risk appetite increased on Tuesday as some upbeat economic data in the US (where new-home sales rose at the fastest pace in over a year in May and consumer confidence rose to its highest level since early 2022 in June) balanced out a fresh round of hawkish comments from several central bank officials.
- Investors' risk appetite increased on Tuesday as some upbeat economic data in the US (where new-home sales rose at the fastest pace in over a year in May and consumer confidence rose to its highest level since early 2022 in June) balanced out a fresh round of hawkish comments from several central bank officials.
- In particular, Christine Lagarde reiterated at the ECB's annual forum in Sintra that the ECB will not be able to end the rate hike cycle any time soon, adding that rates will remain elevated for as long as necessary. Lagarde will take part in a panel discussion today with the Fed's Jereme Powell, the BoE's Andrew Bailey and the BoJ's Kazuo Ueda.
- In this context, sovereign bond yields rose across the board, while equity prices rebounded, particularly in the US. The euro also appreciated against its peers, trading close to the 1.10 threshold against the USD.
- Today, the focus turns to inflation with the release of Italy's June HICP, ahead of the eurozone data on Friday.