Financial Markets Daily Report21 June 2023
In yesterday’s session, investors continued to err on the side of caution amid hawkish rhetoric from ECB officials and mixed economic data.
- In yesterday’s session, investors continued to err on the side of caution amid hawkish rhetoric from ECB officials and mixed economic data.
- In particular, US building permits and housing starts rose more than expected in May, a signal that the real estate sector might be starting to bottom out. In Germany, PPI inflation fell to -1.4% m/m (from +0.3% and compared with a consensus expectation of -0.7%) and +1.0% in year-on-year terms, the lowest since January 2021.
- In this context, yields on sovereign bonds declined on both sides of the Atlantic, despite hawkish messages sent from several ECB Governing Council members and ahead of today’s intervention from Jerome Powell before Congress.
- Equities declined across the board and European natural gas rose by a notable 10% towards 39€/MWh, amid higher temperatures than usual in Europe.