Financial Markets Daily Report09 June 2022
Investors traded cautiously on Wednesday, amid persisting worries about high inflation and slowing economic growth, and ahead of the crucial ECB meeting today. We expect the ECB to confirm the end of net asset purchases in early July and to signal the start of a hiking cycle in the policy rates thereafter.
- Investors traded cautiously on Wednesday, amid persisting worries about high inflation and slowing economic growth, and ahead of the crucial ECB meeting today. We expect the ECB to confirm the end of net asset purchases in early July and to signal the start of a hiking cycle in the policy rates thereafter.
- The OECD joined other multilateral institutions by revising down its global growth projections for this year, to 3.0% from 4.5% predicted earlier. On the data front, Eurostat revised Q1 GDP growth for the eurozone, from 0.3% q/q to 0.6%. Separately, this morning trade data in China showed exports rose by 16.9% y/y in May, above expectations.
- In this context, sovereign bond yields rebounded across the board, rising above the 3% threshold for the US 10-year bond and nearing 1.4% for the German Bund. The increases impaired equity prices while the EUR continued to hover around recent levels. Oil prices continued to march higher, increasing above 123 $/barrel for the Brent.