Daily Report

11 de Julho de 2024
Financial Markets | daily report 11.07.2024
  • Market sentiment improved during yesterday's session as investors turned their attention away from political instability in the euro area to monetary policy in the US. On his second day in Congress, Fed Chairman Powell said the Fed doesn't need inflation below 2% before cutting interest rates and signaled the balance sheet run-off still has "ways to go".
  • In this context, sovereign bond yields fell on both sides of the Atlantic, more markedly in the euro area, which partly reversed the previous session's movements. Equities rose sharply across the board, and the S&P 500 hit its 37th record high this year following a 7-day rally.
  • In commodity markets, oil prices traded below $86/barrel of Brent as concerns about supply disruptions in the aftermath of Hurricane Beryl eased. In currency markets, the euro held steady at $1.08. Today's focus will the release of US CPI for June, expected to show inflation eased to 3.1% y/y (0.1% m/m) from 3.3% last month.