Financial Markets Daily Report15 February 2023
Investors continued to err on the side of caution during a volatile session marked by the release of US CPI inflation for January. The report showed headline CPI rose by 0.5% m/m (+0,1% in December), while the year-on-year rate eased only mildly (6.4% after 6.5% in December), above expectations (6.2% according to Bloomberg).
- Investors continued to err on the side of caution during a volatile session marked by the release of US CPI inflation for January. The report showed headline CPI rose by 0.5% m/m (+0,1% in December), while the year-on-year rate eased only mildly (6.4% after 6.5% in December), above expectations (6.2% according to Bloomberg).
- From the Federal Reserve, Thomas Barkin (Richmond Fed) and Lorie Logan (Fed Dallas) noted after the release of the CPI data that the central bank may need to raise interest rates higher versus the projections set previously.
- In this context, sovereign bond yields rose, more notably at the short end of the curve, while stocks closed with mixed results. In addition, oil prices fell after the US unveiled a plan to release supplies from its strategic reserves.
- This morning, data showed CPI inflation in the UK eased to 10.1% y/y in January from 10.5% y/y in December. Other key data to be published today include retail sales and industrial production in the US.