Financial Markets Daily Report18 April 2024
Investors traded cautiously in yesterday's session amid geopolitical risks and a readjustment of interest rate expectations. In particular, investors’ uncertainty regarding the decision the Bank of England will make rose following the latest higher-than-expected inflation figures for March at 3.2% yoy vs. 3.1% anticipated by consensus.
- Investors traded cautiously in yesterday's session amid geopolitical risks and a readjustment of interest rate expectations. In particular, investors’ uncertainty regarding the decision the Bank of England will make rose following the latest higher-than-expected inflation figures for March at 3.2% yoy vs. 3.1% anticipated by consensus.
- In this context, sovereign bond yields declined modestly on both sides of the Atlantic while equities were mixed, rebounding in the euro area after the previous day's losses, but falling further in the US and accumulating now four consecutive sessions of losses.
- Elsewhere, oil prices eased 3% to around $87/barrel of Brent, weighed down by rising commercial inventories in the US, weaker economic data from China, and the lack of signs of any further escalation of tensions in the Middle East. The US dollar also fell slightly against the yen and the euro, leaving the broad dollar index down 0.30%.