Daily Report

2 de Agosto de 2024
Financial Markets | daily report 02.08.2024
  • Markets saw a risk-off session following the release of weak economic data in the US. The ISM Manufacturing Index for July fell for the fourth consecutive month and remained in contraction territory (46.8), signaling weakness in the manufacturing sector. Investors also await today's release of the employment report for July.
  • Sovereign bond yields fell on both sides of the Atlantic as investors turned to bonds as a safe haven, and euro area periphery risk premia slightly widened. Stocks fell sharply: euro area indices were mostly dragged down by the financial sector, while US indices by the technology sector. The volatility VIX index rose to its second highest level of the year.
  • Elsewhere, the Bank of England cut its benchmark interest rate by 25 bp to 5.0% after a tight 5-4 vote. UK gilts rallied following the announcement and yields fell 10 bp on average along the curve. In Asia, the Nikkei 225 fell as the yen continued to strengthen following the BoJ's rate hike.