Financial Markets Daily Report 24 July 2023
In the last session of the week, investors traded cautiously in absence of key macroeconomic data releases and as they waited for monetary policy meetings this week in the main central banks.
- In the last session of the week, investors traded cautiously in absence of key macroeconomic data releases and as they waited for monetary policy meetings this week in the main central banks.
- Both the Federal Reserve (Wednesday) and the ECB (Thursday) are expected to deliver a 25bp rate increase in their official interest rates and to signal that the hiking cycle is not over yet. The Bank of Japan will also deliver its monetary policy decision on Friday.
- In this context, yields on sovereign bonds edged modestly down on both sides of the Atlantic and stock indices were mixed. In FX markets, the US dollar strengthened against most currencies and the euro fluctuated above $1.11.
- Yesterday, Spanish politics centered the stage as general elections took place and the right-wing parties could not reach the absolute majority, as expected by some polls.