Daily Report

4 de Junho de 2024
Financial Markets | daily report 04.06.2024
  • Markets kicked-off the week on a risk-on tone following the release of weak manufacturing data in the US which boosted expectations the Fed will have room to lower interest rates this year. Specifically, the ISM manufacturing purchasing managers index for May fell to 48.7 from 49.2, and the prices paid component surprised to downside.
  • In this context, sovereign bonds rallied, pushing yields down +8 bp across the board, leaving the US 10-year Treasury and the German 10-year bund yields below 4.40% and 2.60%, respectively. Euro area periphery risk premia held steady, including France's whose sovereign credit rating was revised down from AA to AA- (stable outlook) by S&P.
  • Euro area equities advanced, while their US counterparts ended mostly unchanged except for the tech sector. Elsewhere, oil prices tumbled, and the barrel of Brent fell below $80 for the first time since February after OPEC+ announced it will gradually increase production by the year’s end.