Financial Markets Daily Report15 February 2024
Financial markets reversed part of the large movements from the previous session following the US January CPI report. Sovereign bond yields fell on both sides of the Atlantic, while equity markets recovered most notably in the US. The VIX volatility index fell below 15 once again.
- Financial markets reversed part of the large movements from the previous session following the US January CPI report. Sovereign bond yields fell on both sides of the Atlantic, while equity markets recovered most notably in the US. The VIX volatility index fell below 15 once again.
- On the data front, euro area Q4 GDP second estimate was unrevised from the flash figures released two weeks ago, confirming the economy stagnated at 0.0% q/q and grew 0.1% y/y, while employment grew at 0.3% q/q . In the US, Chicago Fed’s Goolsbee remarked that certain volatility in the data is to be expected on the path to return inflation to 2%.
- In currency markets, the dollar had a volatile session to finally end somewhat lower against the euro and the yen. In commodities, Brent prices slipped below $82/barrel following higher US inventories, and the European natural gas reference continued to fall, now below 25 €/MWh, as demand continues to be weak amid a mild winter.