Financial Markets Daily Report31 August 2023
In yesterday's session, economic data releases continued to center the stage. In the US, Q2 GDP figures were revised downwards from 2.4% q/q SAAR to 2.1%, while, in the euro area, country members' inflation figures failed to prove a decisive trend towards the 2%. Euro area aggregate data will be released today.
- In yesterday's session, economic data releases continued to center the stage. In the US, Q2 GDP figures were revised downwards from 2.4% q/q SAAR to 2.1%, while, in the euro area, country members' inflation figures failed to prove a decisive trend towards the 2%. Euro area aggregate data will be released today.
- In particular, German HICP inflation fell slightly but remained elevated at 6.4%, and Spanish CPI rose by 0.3 pp to 2.6%, driven mainly by an increase in fuel prices. Core inflation, which excludes energy and non-processed food, eased to 6.1%.
- In this context, yields on sovereign bonds rose in Europe but remained barely unchanged in the US. Equities, on the other hand, registered moderate losses in euro area trading floors and modest gains in the US. In FX markets, the euro strengthened against most of its peers, hovering above $1.09.