Financial Markets Daily Report 27 març 2023
In the last session of the week, investors continued to trade with a risk-off mood amid continuing turmoil in the financial system. Doubts about the health of the banking sector led traders to think that central banks will have to stop hiking rates and start cutting them soon.
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- In the last session of the week, investors continued to trade with a risk-off mood amid continuing turmoil in the financial system. Doubts about the health of the banking sector led traders to think that central banks will have to stop hiking rates and start cutting them soon.
- Nevertheless, US Treasury Secretary Janet Yellen said after a meeting with the Federal Reserve and the FDIC that although some institutions have come under stress, the US banking system remains sound and resilient.
- On the data front, composite PMI rose in the main advanced economies thanks to the pickup in the services sector. In addition, the prices paid subcomponent fell sharply in a sign that pipeline inflationary pressures might be easing. In this context, yields decline across the board and equities rose in the US while edging down in the euro area.
- This week the focus will be on the flash HICP inflation figures in the euro area and its main economies.