Financial Markets Daily Report 03 febrer 2022
Financial markets ended the day with mixed results, with investors weighting in a batch of positive earnings reports with rising inflation data and weak signals from the US labour market.
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- Financial markets ended the day with mixed results, with investors weighting in a batch of positive earnings reports with rising inflation data and weak signals from the US labour market.
- Eurozone HICP inflation surprised to the upside, with a +0.1 p. p. uptick to 5.1% y/y in January, a new all-time high.
- As a result, sovereign bond yields rose modestly across the eurozone (the German 10-year Bund briefly passed the 0.05% mark) while the EUR appreciated against its peers. In contrast, the US sovereign bond yield curve ticked down after a decline in the ADP employment survey in January. Stocks rose modestly in both sides of the Atlantic.
- In commodity prices, the Brent price was broadly unchanged, after the OPEC+ group decided to carry on with plans to increase supply by 400k barrels/day in March, defying expectations for a potential bigger adjustment.
- Monetary policy will be the focus today, with policy meetings by the ECB and the Bank of England.