Financial Markets Daily Report 06 julio 2023
The minutes of the Fed's June meeting showed that the decision to hold interest rates steady in June was not unanimous, and that most officials expected further rate hikes would be necessary, as the dot plot had shown. Also yesterday, US factory orders data for May came in below expectations, but still showed growth.
- The minutes of the Fed's June meeting showed that the decision to hold interest rates steady in June was not unanimous, and that most officials expected further rate hikes would be necessary, as the dot plot had shown. Also yesterday, US factory orders data for May came in below expectations, but still showed growth.
- In the eurozone, the Composite PMI for June fell to 49.9 from 52.8 in May, indicating business activity contracted. The decline was driven by a general slowdown in the services industry and a deepening fall in manufacturing. China's services activity also weakened in June according to the Caixin PMI, which grew at the slowest pace in five months.
- In this context, stocks fell across the board, with volatility rebounding from historically low levels. In the fixed income markets, sovereign bond yields rose across the board, with the US 10-year bond rising by 8 bps. The USD also appreciated against its peers on the expectations of more interest rate hikes.