Renta 4: European stock markets point to a new upward opening (EuroStoxx futures +0.27%) to end the weekly session in positive territory . On the bond market, in the US, the 2-year IRR rose more than 14 bps to 4.11%, while the 10-year rose c.+9 bps to 3.91% (3.90 this morning). In Europe, we also witnessed a rebound in IRRs, on average +6 bps, with the T-Bund at c. 2.25%…
CdM | The US Consumer Price Index (CPI) moderated in July to 2.9% year-on-year from 3% in June, according to data released by the US Bureau of Labor Statistics. Core inflation, which excludes food and energy, fell to 3.2% from the previous 3.3%. Both figures were in line with consensus forecasts. Inflation continues to moderate in the US, and the headline index is now at its lowest level since March…
BancaMarch | On expectations of a slowdown in demand from China, OPEC downgrades its global oil demand projections for 2024 and 2025. In its monthly report released on Monday, the cartel forecast demand growth of 2.11 million barrels per day (mb/d) this year and 1.78 mb/d in 2025 (down from 2.25 mb/d and 1.85 mb/d previously estimated). In aggregate, according to the group’s forecasts, global demand for this year would…
Link Securities | According to data from the Labor Department, the number of jobless claims fell by 17,000 to 233,000 in the week ending 3 August, below the consensus forecast of 240,000 claimants. Despite the drop, the actual figure remains significantly above the annual average, indicating that while the US labour market has historically been tight, it has softened since its post-pandemic peak. Also, the four-week moving average of initial…
Renta 4 : European stock markets open moderately higher (Eurostoxx futures +0.3%) after positive US closes, in a session where the S&P 500 posted its best daily performance since November 2022. Yesterday’s better than expected initial jobless claims in the US (233,000 4-week low) helped to alleviate some fears about the US labour market. This helped equity markets, and we also saw a steepening in fixed income, with the US…
Bankinter : The Royal Bank of India (RBI) meets expectations and maintains the benchmark interest rate at 6.50%. It has revised its inflation forecasts upwards for the coming quarters: +4.4% in Q3 versus 3.8% previously and +4.7% in Q4 versus +4.6% previously. It maintains its growth forecast for this fiscal year at +7.2%. Opinion of Bankinter’s analysis team: No surprises. We estimate that it will keep them at the current…
Bankinter | The Bank of Japan says it will not raise rates while markets are unstable. Bank of Japan Governor Shinichi Uchida stated that interest rates will remain at current levels for as long as market volatility persists. He also suggested that the BOJ will carefully consider financial market conditions before making future rate decisions. Bankinter’s research team’s view: Uchida’s dovish message has helped calm markets. The shift towards a…
BancaMarch | The European Union and the five South American countries that make up Mercosur – Argentina, Brazil, Uruguay, Paraguay and Bolivia – are moving closer on the most sensitive issues and aim to conclude a trade agreement before the end of the year. The agreement would create a market of 780 million people and, according to the European Commission, would save the EU bloc’s companies more than €4 billion…
Link Securities | US construction spending fell 0.3% on a monthly basis in June to a seasonally adjusted rate of $2.148 billion, following a revised 0.4% decline in the previous month, and against consensus forecasts for a 0.2% improvement. The reading marks the second consecutive month of falling spending, as private consumption contracted 0.3% in the period, driven by a 0.3% drop in the residential segment, specifically in single-family projects…
Bankinter: The Bank of England (BoE) has cut the Bank Rate by -25bp. to 5.0%, in line with expectations, but is sending a slightly hawkish message about further cuts. Assessment: Both the statement and Bailey’s press conference are non-committal on future moves and reiterate the need to maintain a sufficiently tight monetary policy to ensure that inflation remains at the +2% target. This rules out that the central bank will…