Daily Report

4 de Setembro de 2023
Financial Markets | daily report 04.09.2023
  • Investors ended the week digesting a raft of month-end economic data on both sides of the Atlantic. In the Eurozone, Thursday's release of August inflation figures, which showed headline inflation stable at 5.3%, sent sovereign bond yields higher and major stock indices lower on Friday, despite an encouraging slowdown in core inflation.
  • In the US, the August non-farm payrolls report showed a slightly cooling labour market, potentially easing pressure on the Fed to raise interest rates further, which led to a rally in equities. However, by the end of the session sovereign bond yields hiked and stock's advance cooled, due to a higher-than-expected manufacturing PMI print for August.
  • In this context, the dollar appreciated against its major peers, gaining 0.6% against the euro. Elsewhere, Chinese stock indices rose, as the manufacturing PMI surprised to the upside as well, and the authorities announced further support for home buyers. Finally, the price of Brent crude rose 2% as Russia signalled it could cut supply further.