Financial Markets Daily Report20 July 2022
Investors' sentiment continued to improve yesterday following reports that Russia is willing to restart natural gas exports tomorrow, after the maintenance break. On monetary policy, a report suggesting that the ECB might consider a 50bp hike on Thursday pushed interest rates higher in the euro area.
- Investors' sentiment continued to improve yesterday following reports that Russia is willing to restart natural gas exports tomorrow, after the maintenance break. On monetary policy, a report suggesting that the ECB might consider a 50bp hike on Thursday pushed interest rates higher in the euro area.
- In this context, sovereign bond yields rose in both sides of the Atlantic, particularly so the short end of the curve and euro area peripheral spreads narrowed modestly. In stock markets, equities rose across the board with the financial sector leading the advance in Europe.
- Elsewhere, European gas prices declined moderately while the price of the barrel of Brent rose above $107. The US dollar weakened against most currencies and the euro fluctuated above $1.02.
- Today the focus will be in Italy, as Mario Draghi is expected to decide whether to resign or to face a confidence vote.