Financial Markets Daily Report07 June 2022
Investors started the week with a risk-on mood, with sentiment supported by easing COVID restrictions in China, including reports that Chinese regulators are relaxing some rules against some tech giants. Data also showed the decline in the Chinese services sector eased in May (the services PMI rose from 36.2 to 41.4).
- Investors started the week with a risk-on mood, with sentiment supported by easing COVID restrictions in China, including reports that Chinese regulators are relaxing some rules against some tech giants. Data also showed the decline in the Chinese services sector eased in May (the services PMI rose from 36.2 to 41.4).
- In commodity markets, the optimism fueled a rebound in industrial metals (eg copper) while oil prices continued to fluctuate around recent levels, boosted also by the upward revision in selling prices by Saudi Arabia.
- Stocks picked up in the US, Europe and across Asia, while sovereign yields also rose, with the 10-year US Treasury bond above the 3% level. The GBP deppreciated after PM Boris Johnson won a confidence vote with low support.
- There are no major data releases today, following the publication of industrial orders in Germany, which fell by 2.7% m/m in April, below expectations. The Reserve Bank of Australia also lifted its policy rate by 50 bp this morning.