Daily Report

16 de Julho de 2024
Financial Markets | daily report 16.07.2024
  • Financial markets started the week with all eyes on the ECB’s Governing Council meeting on Thursday. The ECB is expected to leave interest rates unchanged and stick to its "data dependency" approach. European sovereign bond yields fell and peripheral spreads tightened yesterday ahead of the meeting and today's Q2 Bank Lending Survey.
  • In the US, sovereign bond yields rose on growing bets that Trump will win the presidential election in November after he suffered a failed assassination attempt on Saturday. Yields rose despite Powell's comments that Q2 inflation readings "provide some additional confidence" that inflation is moving towards the 2% target.
  • In equity markets, European indices fell while US indices rose slightly amid low volatility. In Asia, equity indices fell after Chinese Q1 GDP data came in below expectations (4.8% y/y vs 5.0% expected). In the FX market, the dollar was indeed weighed down by Powell's comments and depreciated slightly against its major peers.