Daily Report

26 de Junho de 2019
Daily Report 26.06.2019
  • Volatility edged higher and stocks declined across advanced and emerging economies as U.S. officials played down expectations of a breakthrough in trade talks when Presidents Trump and Xi Jinping meet this week at the G20 summit.
  • U.S. and euro area sovereign yields fluctuated around year-lows. Fedspeak reinforced expectations of a rate cut and Italy's finance minister Tria said he was confident of reaching an agreement with the EU regarding fiscal policy. Tria also confirmed Italy would cut its 2019 fiscal deficit target to around 2.1% (from a 2.4% goal it set in April).
  • Fed Chairman Powell warned that the downside risks to the U.S. economy have increased, and added that many FOMC officials see a stronger case for an easier policy stance. St. Louis Fed President Bullard -who had voted for a 25bp cut in June-said a larger cut (e.g. 50bp in July, to which markets attach significant odds) seems unwarranted.