Daily Report

23 de Maio de 2023
Financial Markets | daily report 23.05.2023
  • Investors started the week with no clear direction, focused on the US negotiations over the debt ceiling, which were due to start after markets closed. The opposition leader, McCarthy, said his Monday meeting with President Biden set the talks “on the right path” while Biden called the meeting “productive”, but no agreement was reached yet.
  • Most interventions from Fed’s Governors stressed their data dependence for June’s decision (Daly, Kashkari, Barkin), although St. Louis Fed’s Bullard displayed a more hawkish stance. In Europe, Bank of Spain’s de Cos signaled the ECB still has some way to go to raise interest rates, which should remain high for a prolonged time.
  • In this context, sovereign bond yields rose modestly in both sides of the Atlantic. Stocks were mixed on the day, posting losses in most of Europe, except for Ibex 35 (+0.6%), and some advances in the US, led by the tech sector.
  • Today, the focus turns to the flash PMIs for May across advanced economies.