Daily Report

2 de Julho de 2024
Financial Markets | daily report 02.07.2024


  • The week began with eurozone investors digesting the results of the French parliamentary elections, in which Le Pen's RN did slightly worse than polls had predicted. Eurozone peripheral spreads tightened, although government bond yields rose as Lagarde said in Sintra that the ECB was in no hurry to cut rates further.
  • In the US, Treasury yields also rose despite a weak ISM manufacturing reading for June. In the equity markets, major indices on both sides of the Atlantic rose. In commodity markets, oil prices rose as well, on expectations of higher demand during the summer holiday season and a deterioration in the Middle East conflict.
  • In the FX markets, political tailwinds boosted the euro against its major rivals, especially the CHF. The JPY, on the other hand, extended its depreciation as a sharp revision to Japan's Q1 GDP growth and a slight deterioration in services sector confidence may prevent the Bank of Japan from raising interest rates as soon as expected.