Daily Report

3 de Junho de 2024
Financial Markets | daily report 03.06.2024
  • The week finished off with a session without any significant movements as inflation figures released on Friday largely aligned with expectations. The US PCE deflator for April came in at 2.7% yoy, as expected. Euro area inflation rose to 2.6% yoy in May, just above the 2.5% expected, although the monthly variation recorded the expected 0.3%.
  • Yields on sovereign bonds were mostly flat in the euro area and slightly down in the US as the probability of a cut by the Fed in September rose to 61%, up from 52% in the beginning of last week. For the euro area, markets continue to fully expect a cut in June. Equities were mixed, with slight advances in the US and barely unchanged in the euro area.
  • This week, all eyes will be on the ECB's governing council meeting, where even though a 25 bp interest rate cut is already expected, investors will be looking out for any guidance on the path the ECB will take going forward. Other relevant events this week include the US employment report for May and industrial production figures for euro area countries.