Daily Report

4 de Julho de 2024
Financial Markets | daily report 04.07.2024

Investors' risk appetite increased on Wednesday as the ADP jobs report for June surprised to the downside and the ISM
services report came in below expectations at 48.8. Separately, the release of the latest FOMC minutes showed that Fed
officials acknowledged a slight slowdown in the economy as well as easing price pressures.

In this context, investor expectations for US interest rate cuts increased. In the US markets, Treasury yields fell and equity
indices rose, once again boosted by mega cap technology companies, which are expected to benefit the most from lower
interest rates.

In the eurozone, government bond yields also fell and peripheral spreads tightened as the June PMI showed a slowdown in
growth, and rival parties showed some coordination to prevent the RN from gaining a majority in the second round of the
French elections. Major equity indices also posted gains, while in the FX market the euro strengthened against its peers.