Financial Markets Daily Report12 December 2023
Investors started the week on a subdued note as they await key central bank meetings and data releases this week. Sovereign bond yields were little changed ahead of today's US CPI report. Yesterday, the NY Fed's 1-year inflation expectations index for November extended its decline to 3.4% showing the impact of interest rate hikes.
- Investors started the week on a subdued note as they await key central bank meetings and data releases this week. Sovereign bond yields were little changed ahead of today's US CPI report. Yesterday, the NY Fed's 1-year inflation expectations index for November extended its decline to 3.4% showing the impact of interest rate hikes.
- Major equity indices were mixed around the world, with emerging markets generally underperforming developed markets. Investor sentiment remained risk-on in the US and Europe, where most indices posted some gains, with the US ones closing at new highs for the year.
- In the currency markets, the euro was steady against the dollar after a week in which the greenback had regained some ground. The yen weakened after some news suggested that BoJ officials see little urgency to raise interest rates in December. In commodities, the European natural gas benchmark TTF fell on the back of good weather and reserve levels.