US TSYS: Goldman Play Down Impact Of Fitch Downgrade Of U.S.
Aug-02 06:59
In light of Fitch’s one notch credit rating downgrade Goldman Sachs suggested that “the downgrade mainly reflects governance and medium-term fiscal challenges, but does not reflect new fiscal information. The downgrade should have little direct impact on financial markets as it is unlikely there are major holders of Treasury securities who would be forced to sell based on the ratings change.”
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GILTS: Opening calls
Jul-03 06:58
Gilt calls are mixed and wide this morning, range 95.11/95.43
EQUITIES: EU Cash opening calls
Jul-03 06:54
- Estox 50: +0.33%.
- Dax: +0.26%.
- CAC: +0.33%.
- FTSE +0.17%.
- SMI +0.20%.
Focus on SX5E when it opens.
SWITZERLAND DATA: CPI Within SNB Target For First Time Since Jan '22
Jul-03 06:51
SWISS JUN CPI +0.1% M/M (FCST +0.2%); MAY +0.4% M/M
SWISS JUN CPI +1.7% Y/Y (FCST +1.8%); MAY +2.2% Y/Y
SWISS JUN CORE CPI +1.8% Y/Y; MAY +1.9% Y/Y
- Swiss headline CPI cooled for a fourth consecutive month in June, slowing 0.5pp to +1.7% y/y. On the month, prices ticked up by +0.1% m/m.
- Both headline prints were 0.1pp lower than consensus expectations.
- Energy led the slowdown in CPI, falling -0.6% y/y after +3.7% y/y in May. Food inflation decelerated by 0.2pp to +5.1% y/y. Overall goods prices eased by 0.9pp to +1.8% y/y, whilst services inched down 0.1pp to +1.7% y/y.
- Alongside the 0.3pp deceleration in core to +1.8% y/y, the June inflation data was within the SNB target for the first time since January 2022.
- This follows the downgrading of the June SNB CPI projections for year-end 2023 CPI to 2.0% for Q4 from 2.3% previously.
- Yet with the SNB's latest CPI forecasts above target at +2.2% in 2024 and +2.1% in 2025, further rate rises cannot be ruled out.
