Financial Markets Daily Report16 February 2023
Another session with mixed results across financial markets on Wednesday, with investors keeping the focus on solid economic data and the likely implications for monetary policy decisions by major central banks.
- Another session with mixed results across financial markets on Wednesday, with investors keeping the focus on solid economic data and the likely implications for monetary policy decisions by major central banks.
- In line with last month’s labour market data, retail sales (up by 3% m/m in January) and manufacturing production (up by 1%) surprised on the upside, confirming the US economy likely started 2023 on a strong footing.
- Meanwhile, in Europe, ECB president Christine Lagarde reiterated the central bank intends to raise policy rates by 50 bp next month and then “evaluate the subsequent path” of the monetary policy setting.
- In this context, stocks advanced in the US and across Europe, buoyed by some positive earnings reports, while sovereign bond yields rose further. The USD continued to appreciate against peers, trading below 1.07 against the EUR, following a further upward revision in investors’ expectations about the trajectory of policy interest rates.