Financial Markets Daily Report 05 July 2022
Investors started the week with mixed results, taking on board hawkish commentaries by some ECB officials and news reporting that the US government may announce a decision to lift certain tariffs on Chinese imports.
- Investors started the week with mixed results, taking on board hawkish commentaries by some ECB officials and news reporting that the US government may announce a decision to lift certain tariffs on Chinese imports.
- Bundesbank President Joachim Nagel said the ECB should be cautious in deploying monetary instruments to limit risk debt premia, noting that officials should apply such measures only “under narrowly defined conditions”.
- In this context, sovereign bond yields rose across the board, more notably in the periphery countries in the eurozone, while stocks were mixed across Europe and Asia (markets were closed in the US). In commodity markets, natural gas prices rose to a 4-month high in Europe, as planned strikes in Norway compounded fears over a tight supply.
- In the economic calendar, final service PMIs for June will be released across advanced economies today. Earlier this morning, the Reserve Bank of Australia announced a 50 bp hike in the policy rate.