At the beginning of the previous week, financial markets were demonstrating a negative dynamics spurred by growing anxiety that the spread of the new more contagious coronavirus strain may stop the global economic recovery, weaker-than-expected data regarding the Services Purchasing Managers’ Index (PMI) in the US, as well as a new “attack” of China’s regulatory authorities against Chinese companies whose shares are traded on the American stock exchanges. On Thursday, 08 July, the ECB published a new monetary policy strategy that resulted in the revision of its inflation benchmark. The aim of the strategy review, made for the first time over the last twenty years, was to make sure that the monetary policy strategy is in line with the current and future goals. The new strategy aims at a 2.0% inflation rate in the medium term and allows for the possibility to exceed the above-mentioned target, if necessary. In the course of this strategy revision, the ECB also approved an ambitious plan of action on climate change. The ECB Governing Council also assured that its interest rates continued to be the main monetary policy instrument.

Producer prices in Ukraine are rapidly growing. Investors took a pause in purchasing government bonds

Financial markets survey 12.07.2021