Financial Markets Daily Report 31 May 2022
A positive start of the week across financial markets, with sentiment boosted by resilient survey data in Europe and a relaxation of COVID restrictions in China. Markets were closed in the US due to a public holiday.
- A positive start of the week across financial markets, with sentiment boosted by resilient survey data in Europe and a relaxation of COVID restrictions in China. Markets were closed in the US due to a public holiday.
- On the data front, the economic sentiment indicator in the eurozone improved modestly to 105 in May, beating expectations. Separately, the May HICP flash in both Spain (up by 0.2pp to 8.5% y/y) and Germany (+0.9pp to 8.7%) pointed to upside surprises for the eurozone aggregate, to be released this morning.
- In this context, sovereign bond yields rose notably across Europe, up by 9bp to 1.06% for the 10-year German bund, and more intensively in the periphery countries. Stocks rose in Europe and across Asia, while the EUR strengthened, nearing the 1.08 level against the USD.
- In commodity markets, oil prices rose further, with the EU leaders reaching a deal for a partial ban on Russian oil.