Major developed and emerging market central banks around the globe delivered nearly 1,200 basis points in interest rate hikes in July alone, ramping up their fight against high inflation with Canada surprising markets with an outsized move of 1%. Central banks overseeing five of the 10 most heavily traded currencies delivered 325 basis points of rate hikes last month. This brings the total volume of rate hikes since the start of the year across G10 central banks to 1,100 basis points.
The U.S. services industry unexpectedly picked up in July amid strong order growth, while supply bottlenecks and price pressures eased, supporting views that the economy is not in recession despite output slumping in the first half of the year. The Institute for Supply Management said its non-manufacturing PMI rebounded to a reading of 56.7 last month from 55.3 in June. The increase ended three straight monthly declines.
Business activity in the eurozone contracted slightly in July for the first time since early last year as consumers reined in spending amid increasing cost of living, according to a survey which suggested the outlook for the economy was gloomy. S&P Global’s final composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, fell to a 17-month low of 49.9 in July from June’s 52.0, albeit ahead of a preliminary 49.4 estimate.The 6M Euribor is unchanged at 0.65% compared to previous business day. The 10Y Swap increased with 3 basis points to 1.69% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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