Financial Markets Daily Report 30 August 2022
Investors continued to trade with caution at the start of the week, still digesting the hawkish rhetoric at Jackson Hole conference last weekend and taking on board mixed signals from ECB officials, after chief economist Philip Lane cautioned against outsized interest rate hikes, calling instead for a "steady pace" until the end of its hiking cycle.
- Investors continued to trade with caution at the start of the week, still digesting the hawkish rhetoric at Jackson Hole conference last weekend and taking on board mixed signals from ECB officials, after chief economist Philip Lane cautioned against outsized interest rate hikes, calling instead for a "steady pace" until the end of its hiking cycle.
- In commodity markets, natural gas prices in Europe fell notably after Germany’s Economy Ministry said gas stores are filling up faster than planned and are on track to meet an October target of 85% already next month. In addition, EU Commission President Ursula von der Leyen said the EU is planning urgent steps to push down power prices.
- In this context, equity prices fell further, led by a decline in rate-sensitive tech shares. The Euribor 12-month rose to 1.6%, the highest level in the last decade. Sovereign bond yields also continued to march higher.
- Today, the EU Commission releases its economic survey while HICP inflation is published in Germany and Spain.