Financial Markets Daily Report16 May 2022
Investors' sentiment improved at the end of the week amid comments from Federal Reserve president Jerome Powell signaling that 75 basis points increases are, for now, off the table.
- Investors' sentiment improved at the end of the week amid comments from Federal Reserve president Jerome Powell signaling that 75 basis points increases are, for now, off the table.
- In this context, stock indices rallied, particularly the tech-heavy Nasdaq in the US, while yields on sovereign bonds rose in both sides of the Atlantic. Euro area peripheral spreads widened modestly.
- In FX markets, safe haven currencies such as the US dollar, the Japanese Yen or the Swiss Franc weakened against most of its peers and the euro fluctuated above $1.04.
- On the macro data front, this week the focus will be on the euro area second estimate Q1 GDP figures (Tue.) and on April retail sales and industrial production for the US (Tue.). Early this morning we knew that the Chinese retail sales and industrial production declined more than expected in April (-11,1% and -2.9% yoy, respectively).