Financial Markets Daily Report 09 January 2023
In the last session of the week, investors continued to trade with a risk-on mode, taking on board the fall in HICP inflation in the eurozone (9.2% in December after 10.1%) and the US employment report for December. On balance, the data suggested central banks will continue hiking policy interest rates but likely at a reduced pace.
- In the last session of the week, investors continued to trade with a risk-on mode, taking on board the fall in HICP inflation in the eurozone (9.2% in December after 10.1%) and the US employment report for December. On balance, the data suggested central banks will continue hiking policy interest rates but likely at a reduced pace.
- In particular, the US unemployment rate decreased to 3.5% and 226k jobs were created, a slower pace than the 2022 average (375k) but still high for historical standards.
- In this context, yields on sovereign bonds decreased in the euro area and, more notably, in the US, where the 10-year Treasury fell below 3.60%. Stock indices rose across the board and the US dollar weakened against most of currencies.
- This week the focus will be on the US CPI report for December (Thursday) and the University of Michigan economic sentiment indices (Friday). Spain's final CPI figures for December will be released on Friday.