Financial Markets Daily Report17 January 2023
Financial markets started the week trading with no clear direction, swinging between modest gains and losses across equity markets in Europe and Asia, during a session characterized by low volumes due to a national holiday in the US.
- Financial markets started the week trading with no clear direction, swinging between modest gains and losses across equity markets in Europe and Asia, during a session characterized by low volumes due to a national holiday in the US.
- In the eurozone, ECB Governing Council member Olli Rehn said that a strategy to frontload interest rate hikes to stem inflation would avoid taking even more drastic actions on a later stage, a risk he referred to as a «Volcker shock».
- In commodity markets, natural gas prices in Europe dropped to the lowest level since September 2021, with media reports noting that stockpiles may be nearing full capacity in China. Elsewhere, sovereign bond yields ticked up across Europe while the EUR continued to fluctuate around recent levels.
- This morning, data showed Q4 real GDP rose by 2.9% y/y in China, above expectations. Today, the Bank of Japan also starts its first policy meeting of the year, with policy announcements due to be released tomorrow.