Financial Markets Daily Report14 January 2022
In yesterday's session, the economic impact of the omicron variant together with investors' expectation for central banks were the main drivers in financial markets.
- In yesterday's session, the economic impact of the omicron variant together with investors' expectation for central banks were the main drivers in financial markets.
- On the one hand, new jobless claims in the US rose last week to a nearly two-months high, amid rising coronavirus infections. On the other hand, several Fed officers, including Governor Brainard, suggested that the interest rate lift-off could start as early as March, once the net asset purchases are concluded.
- In this context, stock indices declined in the US, where several financial institutions will start the earnings season today, and edged up modestly in the euro area. In fixed-income markets, yields on sovereign bonds declined on both sides of the Atlantic.
- Elsewhere, the euro strengthened modestly and traded closer to $1.15 while Brent prices fluctuated above $84.