Financial Markets Daily Report30 June 2023
Investors continued to err on the side of caution, taking on board yet another round of hawkish signals from central bankers and incoming data pointing to lingering inflationary pressures and a strong US economy.
- Investors continued to err on the side of caution, taking on board yet another round of hawkish signals from central bankers and incoming data pointing to lingering inflationary pressures and a strong US economy.
- Speaking at a conference at the Bank of Spain, Fed Chairman Jerome Powell said a strong majority of FOMC officials see appropriate to raise rates “two or more times by the end of the year”. In Europe, the Swedish Riksbank hiked the policy interest rates by 25 bp and announced an increase in the pace of bond sales.
- On the data front, German HICP inflation accelerated to 6.8% y/y in June from 6.3%, ahead of the release of the eurozone today. In the US, new weekly jobless claims edged down while Q1 GDP growth was revised higher.
- Sovereign bond yields rebounded across the board while the USD appreciated against its peers, trading below 1.09 versus the EUR. Equity indices closed with mixed results while oil prices ticked higher.