Financial Markets Daily Report17 January 2024
Central bank officials continued to push against the expectation of as many as six interest rates cuts in 2024. Yesterday, was Fed’s Christopher Waller turn, who suggested moving not as quickly as in previous easing cycles.
- Central bank officials continued to push against the expectation of as many as six interest rates cuts in 2024. Yesterday, was Fed’s Christopher Waller turn, who suggested moving not as quickly as in previous easing cycles.
- In this context, yields on sovereign bonds rose across the board, particularly so in the US which accumulated the increase seen on Monday in the euro area. The sharp increase in the Portuguese 10-year yield was due to a change in the Bloomberg reference, now using a bond maturing on October 2034 (previously on July 2032).
- Elsewhere, stock market volatility measured with the VIX Index rose, despite remaining at fairly low levels, and equities suffered generalized losses.
- According to this morning release, Q4 GDP in China rose by 1.0% q/q (1.5% in the previous quarter and 1.1% expected by the Bloomberg consensus), which is pushing the Shanghai stock index 2% down.