Financial Markets Daily Report 08 June 2023
Another session with mixed results across financial markets on Wednesday, with investors’ sentiment weighted down by weak trade data in China and hawkish signals from some major central banks.
- Another session with mixed results across financial markets on Wednesday, with investors’ sentiment weighted down by weak trade data in China and hawkish signals from some major central banks.
- From the ECB, Isabel Schnabel noted that the central bank has not ended its rate-hiking cycle as underlying inflation is proving more persistent than expected. Separately, the central bank of Canada surprised with a 25 pb rate hike.
- In its updated Economic Outlook, the OECD projected global GDP growth will slow down to 2.7% this year and to accelerate only modestly to 2.9% next year, in both cases below the average pace in the 2013-2019 period.
- In this context, sovereign bond yields rose notably across the board, as investors revised their expectations for policy interest rates upwards. Equity indices ended with mixed results, dragged down by a fall in the tech sector. In FX markets, the Turkish Lira depreciated to a record low against the USD.