Wyllian Capucci
07/08/2021
Minutes, movements
Federal Reserve officials were not ready to communicate the momentright for reducing asset purchases, as prospects remain uncertain,showed the minutes of the June meeting. However, there was a feeling that they neededmake a plan in case they needed to move first. Across the Atlantic, it’s abig day at the European Central Bank, where the results of the bigstrategic review of the institution started in January of last year. it is expected that therelease at 8 am GMT, include a higher inflation target and allowspace to exceed that goal, if necessary. ECB President Christine Lagardegives a press conference starting at 9:30 am
Claims
Also at 9:30 this morning, we received the latest check on the job market,with a drop to 350,000 expected initial jobless claims. the minutesyesterday’s Fed clearly showed that officials are very focused on thelabor market, with questions about how it would solve the shortage of workers.which contributes to inflation. JOLTS data for May showed that the openingshit a record for the month. The OECD has released a study showing that economieswill not return to pre-pandemic employment levels by the end of thenext year
Without risk
Investors seem to be having a hard time rethinking the outlook for theglobal economy. Relieving US inflation expectations is helping to pushTreasury yields down, with the 10-year index falling below 1.27%this morning. Falling inflation expectations amid rising delta variantcoronavirus is the main factor for reducing the risk. The 20-day correlation between theS&P 500 futures and Treasury bonds turned negative for the first time sinceFebruary, as bonds return to their traditional protective role forfalling stock portfolios
Markets crash
The rise in sovereign bonds is a global phenomenon, as is the sale of shares.Overnight, the MSCI Asia Pacific index fell 1.2%, while Japan’s Topix indexclosed at 0.8%. In Europe, the Stoxx 600 index fell 1.2% at 6:50 am, with all sectors of theindustry in the red as cyclical stocks led losses. The S&P 500 Futurespointed to a drop of more than 1% at the opening, oil fluctuated around the US$71 a barrel and gold rose.
Coming
Mexico, Brazil and Chile report June CPI readings this morning. The data moreRecent 12:00 noon US crude oil inventories should show a declinesignificant in stocks. President Joe Biden to speak about the reduction inAfghanistan at 2:45 pm. Levi Strauss & Co. and Duck Creek Technologies Inc. are among thecompanies reporting the results.
