Financial Markets Daily Report 19 December 2023
In yesterday's session, investors traded without major economic references, beyond the Germany IFO which confirmed weakness in business sentiment, and amid continuing comments from central bank officials trying to push back against the expectation of the first interest rate hike (e.g.: ECB's Stournaras and Fed's Mester).
- In yesterday's session, investors traded without major economic references, beyond the Germany IFO which confirmed weakness in business sentiment, and amid continuing comments from central bank officials trying to push back against the expectation of the first interest rate hike (e.g.: ECB's Stournaras and Fed's Mester).
- In this context, yields on sovereign bonds edged up on both sides of the Atlantic. In stock markets, equities declined modestly in the euro area while in the US the big tech companies helped the indices to advance.
- In FX markets, the euro strengthened against most of its peers and fluctuated above $1.09. The Japanese Yen weakened ahead of today's BoJ decision to hold rates steady at -0.1%.
- Today the focus will be on the real estate sector data for November in the US and on the final November HICP inflation data for the euro area.