Daily Report

1 de Agosto de 2024
Financial Markets | daily report 01.08.2024
  • The Federal Reserve left interest rates unchanged at 5.25-5.50%, as expected, and hinted that if inflation readings continue in the right direction, a September rate cut "could be on the table." Markets reaffirmed their expectation of three 25bp interest rate cuts for the remainder of 2024. Treasury yields fell by +10bp, and US equities rallied.
  • Euro area headline inflation slightly rose to 2.6% yoy from 2.5% last month while the core component stalled at 2.9% yoy. Prices rose across the area's main economies, except in Spain, where inflation moderated to 2.8% from 3.4% in June. The new data did not change market expectations of two more rate cuts in 2024. Sovereign bond yields ended slightly lower.
  • Euro area equities were mixed. Most indices advanced, except for the Ibex-35, which was dragged down by the financial sector despite some positive earnings results. In currency markets, the euro/dollar cross was mostly stable at 1.08, and the yen extended another session of gains following the BoJ's rate hike announcement.