Daily Report

26 de Julho de 2024
Financial Markets | daily report 26.07.2024
  • US Q2 GDP surprised to the upside. The economy grew at a seasonally adjusted annualized rate of 2.8%, up from 1.4% in Q1, and the GDP deflator fell from 3.1% to 2.3%. The release supported the narrative that the US economy is achieving a soft landing, and left the probability of 100% that investors assign to a Fed rate cut in September unchanged.
  • US Treasury yields fell, and while equities advanced on the release of GDP data, they quickly turned around and closed the day lower as the disappointing tech earnings season dented sentiment for a second consecutive session. Euro area sovereign bond yields and equities followed their US counterparts and ended the session down.
  • Elsewhere, the Bank of Canada cut rates for the second time this year by 25 bp to 4.5%. In Japan, a stronger yen weighed on equities which fell by more than 3% in a single session. In commodity markets, oil prices rose after strong US economic data boosted expectations for stronger demand.