Financial Markets Daily Report 09 febrer 2024
In a session without any major economic news, investors traded cautiously as they continued to assess the probability of future interest rate cuts given the current inflation and activity dynamics.
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- In a session without any major economic news, investors traded cautiously as they continued to assess the probability of future interest rate cuts given the current inflation and activity dynamics.
- ECB officials reiterated the importance of acting carefully as they move forward. Notably, ECB's Phillip Lane warned of the importance of finding a balance between the risks of keeping rates high for too long vs. the risks of cutting them too early. Similarly, Fed's Barkin believes there is no rush to lower rates given the current state of the US labor market.
- In this context, sovereign bond yields rose slightly on both sides of the Atlantic. Equity indices were mixed, posting mild gains in some euro area countries and mostly flat in the US. The Japanese Nikkei 225 rose more than 2% after BoJ's vice-governor stated it is highly unlikely the central bank will raise rates soon, and is now up 10% YTD.
- Elsewhere, Brent prices rose above $81/barrel amid rising uncertainty over the Middle East conflict.