Financial Markets Daily Report 11 mayo 2023
Financial markets closed with mixed results on Wednesday. On one side, inflation data in the US suggested upside pressures in core prices are moderating while, on the other, ECB officials reiterated the need for further policy tightening. Today, the Bank of England unveils its monetary policy decisions.
- Financial markets closed with mixed results on Wednesday. On one side, inflation data in the US suggested upside pressures in core prices are moderating while, on the other, ECB officials reiterated the need for further policy tightening. Today, the Bank of England unveils its monetary policy decisions.
- In particular, headline inflation in the US went down in April by 0.1 pp to 4.9% y/y, with core inflation also ticking down to 5.5% y/y, driven by a further slowdown in shelter prices.
- From the ECB, Bundesbank president, Joachim Nagel, said “there is still work to be done” even if the hiking cycle may be coming to the final stages. ECB president Christine Lagarde also noted that “we still have more ground to cover”.
- In this context, sovereign bond yields edged down while stocks closed with losses across Europe but with positive results in the US. The USD depreciated modestly against peers while oil prices dropped.