The producer prices in Sweden experienced a significant decline of 5.9% year-on-year in August 2023, marking an acceleration from the 2.1% fall in the previous month. In Hungary, there was a notable turnaround as the country posted a current account surplus of Є0.7B in the second quarter of 2023, in contrast to a Є2.7B deficit in the same period the previous year. However, this surplus fell short of market expectations of a 0.94B surplus.
The pan-European Stoxx 600 index saw a decline of 0.75%, with all sectors experiencing losses. Tech stocks were especially affected by this downturn. This decrease is believed to be influenced by the prevalent sentiment of “higher for longer” interest rates, which has had a widespread impact across financial markets.
In terms of upcoming events, the session will include the release of US consumer confidence and new home sales data. On the bond market, the US 10-year Treasury yield saw a minor decrease of less than 1 basis point to 4.53%, while Germany’s 10-year yield experienced a similar decrease to 2.79%. Finally, the UK’s 10-year yield dropped by 4 basis points to 4.29%.