END OF DAY REPORT JUNE 27th

HIGHLIGHTS- EQUITIES, FUTURES & OPTIONS

ECB policymakers see little chance of pause in rate hikes in July or September as inflation remains stubborn, sources cited by Reuters say Policymakers don't expect evidence that stubborn inflation is easing to be clear enough for them to pause this summer. Seven rate-setters at the Sintra forum showed that most expected to increase borrowing costs again at both its July and September meetings despite signs the Eurozone economy is flagging. Of a group of hawks, only one opened the door to a pause in September after recent data showed inflation and economic activity slowing, the report said. The others said a hike at the ECB's September 14th meeting was more likely than not.

Fitch Ratings says global credit risks continue to be heightened as rate hikes continue in to H2 2023 amid inflation pressure Fitch says Stronger-than-expected growth in US, Europe, Chinain H1 underpinned positive changes to many sector outlooks.

SUMMARY

HSBC ASSET MANAGEMENT REPORT KEY POINTS:

In its midyear outlook, the British banking giant’s asset manager said recession warnings are “flashing red” for many economies, while fiscal and monetary policies are “out of sync” with stock and bond markets.
Along with China, HSBC believes India is the “main macro growth story in 2023” as the economy has recovered strongly from the Covid pandemic on the back of resurgent consumer spending and services.