Financial Markets Daily Report 16 June 2023
Yesterday’s session was dominated by the ECB’s 25bp hike, which brought the deposit facility rate to 3.5%, and by a hawkish tone from President Lagarde. She strongly hinted at a further 25bps hike in July, stating that the bank still had some ground to cover and was not considering a pause.
- Yesterday’s session was dominated by the ECB’s 25bp hike, which brought the deposit facility rate to 3.5%, and by a hawkish tone from President Lagarde. She strongly hinted at a further 25bps hike in July, stating that the bank still had some ground to cover and was not considering a pause.
- Eurozone sovereign bond yields rose across the board: short-term ones ca. 10bps and long-term ones around 4bps. In the US yields edged lower as investors weighed a raft of economic data against Wednesday’s Fed hawkish pause.
- Mixed economic data fuelled gains in US equities, with the S&P500 and Nasdaq hitting 14-month highs. Major European indices were broadly lower, with the exception of the Ibex 35 and PSI 20.
- The EUR strengthened on the ECB’s policy statement, while the USD weakened against its major counterparts. Separately, the European gas benchmark TTF gained 7.4% yesterday on fears of exceptionally hot weather ahead.