Financial Markets Daily Report08 September 2022
In yesterday’s session investors traded cautiously as they continued to assess the global economic global outlook, amid worse-than-expected exports data in China, and as they positioned for today’s ECB Governing Council meeting.
- In yesterday’s session investors traded cautiously as they continued to assess the global economic global outlook, amid worse-than-expected exports data in China, and as they positioned for today’s ECB Governing Council meeting.
- Implied rates in money markets assume that the increase in euro area official interest rates could be higher than 50bp. Also, the ECB will update its macroeconomic projections, which will probably show higher inflation rates for 2022 and 2023 (currently at 6.8% and 3.5%, respectively).
- In this context, stock indices were mixed in Europe while increasing in the US. In fixed-income markets, yields on sovereign bonds decreased markedly in both sides of the Atlantic.
- In commodity markets, the price of the barrel of Brent fell below $90, a level not seen since early February, and European gas prices declined by more than 10%.