Financial Markets Daily Report29 September 2023
Yesterday's session was filled with economic data releases. In the US, Q2 2023 GDP revision left growth unchanged from previous estimates at 2.1% SAAR, and personal consumption had its slowest increase in a year. In Europe, September inflation in Germany eased to 4.5% y/y from 6.1% in August but ticked up in Spain to 3.5% from 2.6%.
- Yesterday's session was filled with economic data releases. In the US, Q2 2023 GDP revision left growth unchanged from previous estimates at 2.1% SAAR, and personal consumption had its slowest increase in a year. In Europe, September inflation in Germany eased to 4.5% y/y from 6.1% in August but ticked up in Spain to 3.5% from 2.6%.
- In this context, sovereign bond markets were mixed, with euro area bonds extending their sell-off and yields rising by as much as 10 basis points as investors seem to continue to be guided by “high for longer” rhetoric. In the US, however, yields fell following weaker-than-expected economic data.
- Equity indices rose modestly on both sides of the Atlantic. In commodities, the oil rally came to a pause, failing to pass the $96 mark from the day before. The US dollar also halted and slightly fell but left the euro mostly unchanged around $1.05. Today, September euro area inflation data will be released.