Daily Report

14 de Setembro de 2023
Financial Markets | daily report 14.09.2023
  • In yesterday's session, the US CPI report of August centered the stage in financial markets. Headline inflation surged from 0.2% m/m to 0.6% due to an increase in gasoline prices-(3.7% y/y) while core inflation ticked modestly up from 0.2% m/m to 0.3% (4.3% y/y).
  • These figures will likely not push the Fed to hike rates next week but will prevent it from signaling that there will be no further hikes in this tightening cycle. At today's ECB monetary policy meeting a similar narrative is expected. While a 25bp rate hike has a 60% probability (vs. remaining unchanged) the ECB will probably offer a hawkish bias.
  • In this context, yields on sovereign bonds edged up in the euro area and declined in the US. In equity markets, stock indices were barely unchanged on both sides of the Atlantic, but color red dominated in Europe and color green in the US. Elsewhere, the USD strengthened and the euro traded above $1.07.