Financial Markets Daily Report 14 July 2023
In yesterday's session, investors continued to digest the lower-than-expected US inflation report for June and traded with a risk-on mood. In addition, US PPI data for June reinforced the disinflationary environment while St. Louis Fed President James Bullard, one of the most hawkish FOMC member in this cycle, announced his resignation.
- In yesterday's session, investors continued to digest the lower-than-expected US inflation report for June and traded with a risk-on mood. In addition, US PPI data for June reinforced the disinflationary environment while St. Louis Fed President James Bullard, one of the most hawkish FOMC member in this cycle, announced his resignation.
- In this context, yields on sovereign bonds declined markedly on both sides of the Atlantic while equities posted solid gains across the board, fueled by the expectation of lower interest rates ahead.
- Elsewhere, the US dollar weakened against most advanced and emerging economies' currencies and the euro fluctuated above $1.12, a level not seen since February 2022.
- Today the focus will be on July's University of Michigan sentiment indicators in the US and the kickoff of the Q2 corporate earnings season. In addition, GDP data for Q2 in China will be released on Monday.