Financial Markets Daily Report

Financial Markets Daily Report
02 maig 2023

In yesterday’s session, investors reacted to the acquisition of First Republic Bank by JP Morgan, after the US government asked the biggest US bank to do so, according to the press note released by the bank. European financial markets were closed because of the May 1st holiday. Trading happened only in the US, Japan, and some emerging economies.

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  • In yesterday’s session, investors reacted to the acquisition of First Republic Bank by JP Morgan, after the US government asked the biggest US bank to do so, according to the press note released by the bank. European financial markets were closed because of the May 1st holiday. Trading happened only in the US, Japan, and some emerging economies.
  • Given that First Republic shares had already lost most of their value, its failure had no major impact in financial markets and US equities just ticked marginally down. In fixed-income, yields on US Treasuries rose markedly amid an increase in corporate investment grade bond issuance.
  • This week the focus will be on the US Federal Reserve and ECB meetings (Wednesday and Thursday, respectively), where we expect both central banks to deliver a 25bp interest rate hike. Also, April euro area preliminary CPI data is released today and the US labor market report on Friday.
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