Financial Markets Daily Report 19 June 2023
In the last session of the week, investors weighed better-than-expected economic data releases in the US with a hawkish tone from Federal Reserve officials. In particular, Christopher Waller and Thomas Barkin highlighted that inflation remains too high and stubbornly persistent, which might prompt a 25bp rate hike at the July meeting.
- In the last session of the week, investors weighed better-than-expected economic data releases in the US with a hawkish tone from Federal Reserve officials. In particular, Christopher Waller and Thomas Barkin highlighted that inflation remains too high and stubbornly persistent, which might prompt a 25bp rate hike at the July meeting.
- On the data front, University of Michigan sentiment indicators rose in June, according to the preliminary release, while inflation expectations declined (from 4.2% to 3.3% the one-year ahead, and from 3.1% to 3.0% the 5-to-10 year).
- In this context, yields on US sovereign bonds edged up while the S&P 500 and Nasdaq halted six consecutive sessions of advances. On the other hand, yields edged lower in the euro area and stock indices posted moderate gains.
- This week the focus will be on June’s flash PMIs for the main advanced economies. Today US financial markets will be closed due to the Juneteenth holiday.