Financial Markets Daily Report 10 June 2022
Financial markets extended losses on Thursday, following the confirmation by the ECB to accelerate the withdrawal of policy accommodation, including ending net purchases on July 1st and starting a rate liftoff cycle on the 21st.
- Financial markets extended losses on Thursday, following the confirmation by the ECB to accelerate the withdrawal of policy accommodation, including ending net purchases on July 1st and starting a rate liftoff cycle on the 21st.
- The hawkish shift by the ECB fueled a selloff of sovereign bonds across the board, with the yield on the German 10-year bond rising by 8 bp to 1.4% and the spreads across the eurozone periphery widening. Stocks also fell notably in both sides of the Atlantic, while the EUR hovered around recent levels.
- In commodity markets, oil prices wavered near 123 $/barrel as a new decline in US crude inventories offset renewed lockdown measures in Shanghai.
- Today, the focus will be on the May’s CPI inflation report for the US, with consensus expecting a modest descend (-0.1 pp to 8.2% for headline inflation). French parliamentary elections are due to take place on Sunday.