Financial Markets Daily Report21 juliol 2023
Investors continued to trade with a cautious tone on Thursday, taking on board a new bath of data pointing to moderating inflationary pressures in Europe and a tight labour market in the US.
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- Investors continued to trade with a cautious tone on Thursday, taking on board a new bath of data pointing to moderating inflationary pressures in Europe and a tight labour market in the US.
- In particular, producer prices continued to slow down in Germany, up by 0.1% y/y in June after 1.0% in the previous month and reaching the lowest level since November 2020. Separately, new jobless claims in the US surprised by falling in the previous week, down to a two-month low of 228k.
- In this context, sovereign bond yields rebounded across the board, the USD depreciated against its peers while equity indices rose across Europe but fell in the US, amid expectations of a tighter monetary policy ahead.
- Elsewhere, the Turkish Lira depreciated towards a new record high of 27 against the USD after the central bank announced a 250 bp hike in the policy interest rate, 100 bp below consensus expectations.