Daily Report

27 de Maio de 2024
Financial Markets | daily report 27.05.2024
  • Investors continued to adjust their expectations for future interest rate cuts following strong PMIs, higher-than-expected wage growth in the euro area , and some hawkish remarks from central bank officials. Markets are now pricing in just two cuts from the ECB this year and one cut from the Fed, down from three and two, respectively, last week.
  • In this context, yields on sovereign bonds were mostly unchanged on both sides of the Atlantic. Equities were mixed in the euro area and advanced in the US supported by University of Michigan final sentiment data confirming consumers lowered inflation expectations.
  • The main focus this week will be on euro area economic confidence (Thurs.), unemployment rate (Thurs.), and inflation figures for May (Friday). US financial markets will be closed today for Memorial Day holiday, but during the rest of the week investors will be attentive to the release of April's PCE deflator (Friday), the Fed' favored inflation measure.