Financial Markets Daily Report08 February 2022
Investors started the week trading with caution as they continued to digest the positive figures of the January's employment report in the US and took positions ahead of Thursday's release of CPI inflation. In the euro area, ECB comments moderated financial markets expectations for a big monetary policy tightening.
- Investors started the week trading with caution as they continued to digest the positive figures of the January's employment report in the US and took positions ahead of Thursday's release of CPI inflation. In the euro area, ECB comments moderated financial markets expectations for a big monetary policy tightening.
- In particular Christine Lagarde said that there are no signals yet that inflation will be persistently or significantly above the 2% target in the medium run, which would require a "measurable tightening".
- In this context, stock indices declined in the US and in Asia and were mixed in the euro area. In fixed-income markets, sovereign yields continued to increase in the euro area and peripheral spreads edged modestly up.
- In commodity markets, European gas and oil prices moderated but remain at very high levels (around €80/MWh and above $90 per barrel of Brent).