Financial Markets Daily Report 04 February 2021
Mario Draghi met Italy's president Sergio Mattarella on Wednesday and agreed to try to form a government of national unity after the recent collapse of the government coalition. It is however uncertain whether Draghi will be able to put together a willing coalition of parties.
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- Mario Draghi met Italy's president Sergio Mattarella on Wednesday and agreed to try to form a government of national unity after the recent collapse of the government coalition. It is however uncertain whether Draghi will be able to put together a willing coalition of parties.
- Italy's 10-year yields dropped 7 basis points on the prospect of a new coalition government headed by Draghi, while the MIB rose 2.1% as investors snapped up Italian stocks. The Eurostoxx50 index was up 0.5% on the day.
- Data released on Wednesday showed that headline inflation in the eurozone had risen to 0.9% in January (from -0.3% in December). The increase was partly due to one-off factors that will reverse in coming months (see here).
- Meanwhile, in the US, the S&P 500 edged up 0.1% and yields tightened slightly as Democrats said they were willing to use a procedure known as budget reconciliation to pass a stimulus bill and circumvent reticent Republicans.