Financial Markets Daily Report28 July 2022
Demand for riskier assets dominated investors mood on Wednesday, following a widely expected interest rate increase by the Federal Reserve and positive signals from various corporate earnings result in both Europe and the US. Adding to the positive sentiment, orders placed with US factories unexpectedly rose in June.
- Demand for riskier assets dominated investors mood on Wednesday, following a widely expected interest rate increase by the Federal Reserve and positive signals from various corporate earnings result in both Europe and the US. Adding to the positive sentiment, orders placed with US factories unexpectedly rose in June.
- In line with expectations, the Federal Reserve delivered a 75 bp hike in the policy rate to the 2.25%-2.50% range. The central bank reaffirmed its intentions to continue with “ongoing increases” in borrowing costs ahead but noted that decisions will be based on the evolution of economic data, which is showing signs of deceleration.
- Equity prices rebounded across the board, in the US also boosted by positive corporate results from some tech giants. The US Treasury yield curve steepened modestly while sovereign yields across Europe rose, more notably in Italy.
- Today, the focus will be on the flash Q2 GDP in the US and the July's economic survey from the EU Commission.