Financial Markets Daily Report30 August 2023
In yesterday's session, weaker-than-expected US economic data led investors to lower their expectations for Federal Reserve interest rate hikes at upcoming meetings.
- In yesterday's session, weaker-than-expected US economic data led investors to lower their expectations for Federal Reserve interest rate hikes at upcoming meetings.
- On the one hand, the Conference Board consumer confidence index fell from 114 points in July to 106.1 in August. On the other hand, the number of job vacancies according to July’s JOLTS declined to 8,827k from a downwardly revised 9,165k in June, in a sign that the tight monetary policy stance might be starting to hit the labor market.
- In this context, yields on sovereign bonds declined sharply on both sides of the Atlantic, with the impact being particularly visible in the 2-year US Treasury which plunged 16bp to 4.89%. In equity markets, volatility as measured by the VIX index, declined and stock indices advanced notably across the board.
- Today the focus will be on the second estimate of US Q2 GDP and on August CPI inflation for Germany and Spain.