Daily Report

28 de Maio de 2024
Financial Markets | daily report 28.05.2024
  • Yesterday's session saw increased risk appetite in the euro area following dovish comments from the ECB's Villeroy, who did not rule out two consecutive interest rate cuts in June and July and sees ample space to lower rates from the current 4% policy level. He also remarked that the Fed's policy should not affect the ECB's.
  • In this context, sovereign bonds rallied and yields fell by more than 5 bp across the region while periphery spreads narrowed slightly. Equities rose modestly, with gains led by the utilities sector, in a session with low trading volumes due to holidays in the US and UK, which kept their local financial markets closed.
  • Elsewhere, commodity prices rose (Brent +1% and European gas reference +3%) following a pick-up in geopolitical tensions in the Middle East after an attack by Hamas in the Tel Aviv region and Israel's strike as a response.
  • Markets await May CPI inflation data in the euro area and April PCE data in the US (both on Friday).