Financial Markets Daily Report

Financial Markets Daily Report
01 February 2023

Investors continued to trade cautiously on Tuesday, taking position ahead of a crucial monetary policy meeting at the Federal Reserve today, where the central bank is expected to scale down the pace of interest rate hikes (+25 bp) but to signal more adjustments ahead.

FMDR
  • Investors continued to trade cautiously on Tuesday, taking position ahead of a crucial monetary policy meeting at the Federal Reserve today, where the central bank is expected to scale down the pace of interest rate hikes (+25 bp) but to signal more adjustments ahead.
  • On the data front, eurozone GDP surprised with a 0.1% q/q gain in Q4, defying expectations for a mild contraction. In the US, consumer confidence deteriorated in January (Conference Board) while wage inflation eased in Q4.
  • In this context, stocks closed with mixed results across Europe but rebounded in US, led by the tech sector. Sovereign bond yields ticked down while the USD depreciated modestly against peers. In addition, oil prices dropped further ahead of the OPEC+ meeting today.
  • Today, Eurostat releases January’s flash HICP inflation for the eurozone.
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