Financial Markets Daily Report10 February 2023
In yesterday’s session, investors traded cautiously, closing with mixed results in the US and in Europe. The lower-than-expected HICP inflation print in Germany (9.2% in January from 9.6%) pushed down yields on sovereign bonds in the euro area (despite the hawkish tone from some ECB officials) and allowed stock indices to increase.
- In yesterday’s session, investors traded cautiously, closing with mixed results in the US and in Europe. The lower-than-expected HICP inflation print in Germany (9.2% in January from 9.6%) pushed down yields on sovereign bonds in the euro area (despite the hawkish tone from some ECB officials) and allowed stock indices to increase.
- Meanwhile in the US, the messages from FOMC officials, favoring higher interest rates, pushed Treasury yields upwards and equities downwards. In addition, despite a modest increase, initial weekly unemployment claims continued to show a very tight labor market, fueling expectations that the Federal Reserve will keep hiking rates.
- Elsewhere, Brent and natural gas prices eased modestly and the US dollar weakened against most advanced economies’ currencies, allowing the euro to fluctuate comfortably above $1.07.
- Today the focus will be on the February US Conference Board consumer confidence indicators.