Financial Markets Daily Report10 January 2022
In the last session of the week, investors continued to digest the hawkish messages of the minutes of the last Federal Reserve meeting as well as relevant economic data releases. In the US, non-farm payrolls increased in December by 199k (consensus expected +400k) and the unemployment rate declined by 0.3 pp to 3.9%.
- In the last session of the week, investors continued to digest the hawkish messages of the minutes of the last Federal Reserve meeting as well as relevant economic data releases. In the US, non-farm payrolls increased in December by 199k (consensus expected +400k) and the unemployment rate declined by 0.3 pp to 3.9%.
- In the euro area, HICP inflation rose to 5.0% y/y in December pushed, mainly, by the increase in food prices, which more than compensated the 1.5 pp decline in the energy component (to 26%). Core inflation stood at 2.6%
- In this context, yields on sovereign bonds rose in both sides of the Atlantic, with peripheral spreads widening modestly, and stock indices edged down (except for the financial and energy sectors).
- This week the focus will be on the release of December CPI inflation and industrial production for the US (Wednesday and Friday, respectively) and the euro area industrial production for November (Wednesday).