Financial Markets Daily Report 16 mayo 2023
In the first session of the week, investors traded with a cautious mood amid hawkish rhetoric from regional Federal Reserve presidents and an upbeat revision of the euro area forecasts done by the European Commission.
- In the first session of the week, investors traded with a cautious mood amid hawkish rhetoric from regional Federal Reserve presidents and an upbeat revision of the euro area forecasts done by the European Commission.
- In particular, the EC revised 0.2 and 0.1 pp upwards the GDP growth for the region in 2023 and 2024 to 1.1% and 1.6%, respectively, and expects the unemployment rate to decline from 6.8% in 2023 to 6.7% next year. Inflation was also revised higher to 5.8% and 2.8% in 2023 and 2024.
- In this context, yields on sovereign bonds rose modestly in both sides of the Atlantic while equities advanced modestly in most trading floors. The euro strengthened against the USD but remained below $1.09.
- Today the focus will be on the ZEW survey for Germany and the euro area and the meeting between Joe Biden and House of Representatives Speaker Kevin McCarthy in search for a deal on the debt ceiling.