Daily Report

7 de Junho de 2024
Financial Markets | daily report 07.06.2024
  • As expected, the ECB lowered interest rates by 25 bp, taking the depo and refi rates to 3.75% and 4.25%, respectively. As for its next steps, the ECB once again remarked future decisions will be "data-dependent", noting that the inflation path will not be exempt from surprises.
  • Markets focused on the ECB's restrictive bias regarding its next steps, considering yesterday's decision had already been widely discounted. In this sense, euro area sovereign bond yields rose modestly, +4 bp on average. Equities, on the other hand, posted some mild advances.
  • The ECB's decision had little impact in US markets, where Treasury yields were mostly unchanged and the main equity indices ended flat. Investors await May's employment report released later today. Indicators released during the week, including yesterday's rise in unemployment benefit claims, all point to a slight cooling of the labor market.