Financial Markets Daily Report

Financial Markets Daily Report
07 September 2022

Investors continued to trade with caution in anticipation of further monetary tightening by the Fed, despite ISM service sector survey in August was consistent with very solid growth in Q3. In the euro zone, the surveys anticipate the ECB will hike interest rates by, at least, 50 bp on Thursday.

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  • Investors continued to trade with caution in anticipation of further monetary tightening by the Fed, despite ISM service sector survey in August was consistent with very solid growth in Q3. In the euro zone, the surveys anticipate the ECB will hike interest rates by, at least, 50 bp on Thursday. 
  • Volatile trading in stock markets and Treasuries slid across the curve, taking the 10- year yield above 3.3%. The dollar climbed to another record, while the yen tumbled to a 24-year low against the greenback.
  • European natural gas prices eased with politicians scrambling to find solutions after Moscow switched off its main pipeline to Europe. Gains in oil prices sparked as demand risks from more monetary tightening and China’s Covid lockdowns increased.
  • Today the focus will be in Fed’s Beige Book, and in the Chinese trade balance in August.
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