Financial Markets Daily Report15 junio 2022
During a volatile session, investors continued to trade with a cautious mode, taking position ahead of the crucial Federal Reserve meeting today. Implied forwards suggest a 75 bp interest hike is expected to be announced today.
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- During a volatile session, investors continued to trade with a cautious mode, taking position ahead of the crucial Federal Reserve meeting today. Implied forwards suggest a 75 bp interest hike is expected to be announced today.
- ECB Governing Council member Klaas Knot noted that the ECB should leave the door open for an interest rate hike higher than 50 bp in September, while Isabel Schnabel reiterated a new instrument could be agreed to counter signs of financial fragmentation. The ECB will reportedly hold an emergency ad-hoc meeting today.
- On the data front, PPI inflation in the US rose more than expected, up to 11% y/y in May. In Germany, the ZEW survey showed a modest improvement in June.
- In this context, sovereign yields continued to rise while stocks fell further. In commodity markets, European natural gas rebounded after Russia’s Gazprom said flows via the Nord Stream pipeline will be cut by 40% due to disruptions.