Daily Report

31 de Maio de 2023
Financial Markets | daily report 31.05.2023
  • Signs of disinflationary pressures and a worsening of household and firm's economic confidence in the euro area were yesterday's main drivers in financial markets. Investors' expectation of the official ECB interest rates was revised downwards between 10 and 15bp for 2023 and 2024.
  • In this context, yields on sovereign bonds declined on both sides of the Atlantic, in the US also pushed by the potential approval in Congress this week to increase the debt ceiling before June 5th. In stock markets, equities declined in the euro area and rose modestly in the US.
  • Euro area disinflationary pressures were made evident with the release of Spanish CPI data for May (headline: 3.2% from 4.1%; excluding energy and non-processed food: 6.1% from 6.6%) and Italy's April PPI (-3.5% y/y from +3.0%). Today, the focus will be on May inflation figures for Germany and France.