Market Comment | Reinforced interest rate cut expectations move markets

Summary

This week, financial markets continued to reassess Fed’s interest rate cut expectations in the wake of recently released strong payrolls data, a resumption of US-China trade talks and yesterday’s firmer CPI inflation figures.

Key points

• Key points:
• Powell’s testimony on Wednesday reinforced markets expectations of a 25bps insurance-cut in July.
• Long-term bond yields extended its increase.
• Brent prices rebounded sharply this week.
• Italy’s risk premium extends its drop.
• S&P 500 crosses the 3,000 threshold for the first time in the history.

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