Daily Report
9 de Setembro de 2022
Financial Markets | daily report 09.09.2022
  • Investors focused yesterday on the ECB Governing Council meeting, where interest rates were raised by 75bp, and US Federal Reserve hawkish comments. Both central banks showed determination to tackle elevated inflation and to bring it back to their 2% target.
  • The ECB expects to continue raising interest rates over the next several meetings, front-loading the exit from the very accommodative monetary policy stance and trying to reach the interest rate consistent with the 2% objective as soon as possible. Lagarde said that quantitative tightening was not discussed at the meeting.
  • In this context, yields on sovereign bonds rose in Europe, particularly so in the short end of the curve, and stock indices increased, with an overperformance of the financial sector in the euro area. In FX markets, the euro weakened modestly and traded for most part of the afternoon below the parity against the US dollar.