Financial Markets Daily Report29 June 2022
In yesterday's session, financial markets closed with mixed results as several drivers affected sentiment differently. While the easing of Chinese lockdowns measures boosted risk appetite, the worse-than-expected reading of US consumer confidence (98.7, down from 106.4) erased initial signs of recovery in risky assets.
- In yesterday's session, financial markets closed with mixed results as several drivers affected sentiment differently. While the easing of Chinese lockdowns measures boosted risk appetite, the worse-than-expected reading of US consumer confidence (98.7, down from 106.4) erased initial signs of recovery in risky assets.
- Speaking in the ECB Forum in Sintra, Christine Lagarde said that the ECB will raise interest rates "as far as necessary" to bring back inflation to 2% in the medium term. The ECB President explained that the new anti-fragmentation tool will be efficient, proportional and will feature some conditionality.
- In the euro area, sovereign yields rose while peripheral spreads narrowed and stock indices rose modestly. By contrast, US Treasury yields edged down and equity indices declined. Today the focus will be on the EU Commission confidence indicators for June and the flash HICP inflation in Germany and Spain (from 8.5% y/y to 10.0% y/y in June).