Financial Markets Daily Report30 June 2022
Investors continued to trade with caution amid comments from central bank officials which reinforced their intention to tame elevated inflation. In particular, Fed President Powell said in a panel discussion with ECB and BoE presidents that the objective is to bring down inflation, even if this process could put economic growth at risk.
- Investors continued to trade with caution amid comments from central bank officials which reinforced their intention to tame elevated inflation. In particular, Fed President Powell said in a panel discussion with ECB and BoE presidents that the objective is to bring down inflation, even if this process could put economic growth at risk.
- In this context, stock indices declined across the board. In fixed-income markets, sovereign yields fell in both sides of the Atlantic but more markedly in the euro area, after the decline in y/y HICP inflation in Germany (from 8.7% to 8.2% in June). This reading contrasts with the pickup of inflation in Spain, Belgium and France (released this morning).
- In energy markets, Brent prices slipped as gasoline inventories data rose in the US and ahead of the OPEC+ meeting today. European gas prices continued to increase and fluctuated around €140/MWh.
- Today, the release of the Chinese PMIs pointed to a recovery in activity in June (Composite +5.6 to 54.1 points).