Financial Markets Daily Report

Financial Markets Daily Report
17 March 2023

Volatility remained elevated across financial markets on Thursday, in a session characterized by risk-on sentiment. In line with expectations, the ECB announced a 50 bp hike in its policy interest rates, although refusing to pre-commit to a given size and pace of future adjustments, instead reiterating a data-dependency approach.

FMDR
  • Volatility remained elevated across financial markets on Thursday, in a session characterized by risk-on sentiment. In line with expectations, the ECB announced a 50 bp hike in its policy interest rates, although refusing to pre-commit to a given size and pace of future adjustments, instead reiterating a data-dependency approach.
  • Separately, financial stress in the banking sector receded after the Swiss lender Credit Suisse announced a plan to tap a credit line provided by the Swiss National Bank and after news reported that major banks in the US are in talks to bolster the regional lender First Republic Bank.
  • In this context, stock indices rebounded across US and Europe, led by a recovery in bank shares. Sovereign bond yields also went up while the euro exchange rate appreciated modestly against the USD.
  • Today, the final February HICP inflation report is released for the eurozone. 
     
Etiquetas:
FMDR