Financial Markets Daily Report 11 July 2022
In the last session of the week, the stronger-than-expected US labor market indicators for June eased investors' recession fears. Non-farm payrolls increased by 372k (from 384k in May), the unemployment rate stood at 3.6% and wages rose by 5.1% y/y, which all together fuels the Fed's intention to raise rates by 75bp at its next meeting.
- In the last session of the week, the stronger-than-expected US labor market indicators for June eased investors' recession fears. Non-farm payrolls increased by 372k (from 384k in May), the unemployment rate stood at 3.6% and wages rose by 5.1% y/y, which all together fuels the Fed's intention to raise rates by 75bp at its next meeting.
- In this context, stock indices were barely flat in the US and rose in most euro area countries. In fixed-income markets, yields on sovereign bonds edged up in both sides of the Atlantic and euro area peripheral spreads narrowed.
- In FX markets, the US dollar weakened against most advanced economies' currencies and the euro traded below $1.02. In oil markets, the price of the barrel of Brent rose towards $107.
- This week the focus will be on the US inflation data for June (Wednesday) and on June's final CPI data for many countries in the euro area (Spain's on Wednesday).