Financial Markets Daily Report 19 January 2023
Financial markets closed with mixed results during a volatile session on Wednesday, as investors weighted out data in the US showing a weak year-end for retail sales (-1.1% m/m in December) and industrial production (-0.7%) with signs of further easing in inflationary pressures (headline PPI fell by 0.5% m/m in December).
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- Financial markets closed with mixed results during a volatile session on Wednesday, as investors weighted out data in the US showing a weak year-end for retail sales (-1.1% m/m in December) and industrial production (-0.7%) with signs of further easing in inflationary pressures (headline PPI fell by 0.5% m/m in December).
- The disappointing figures reinforced fears of an economic recession but also bolstered expectations for a less aggressive monetary policy tightening ahead. In this context, sovereign bond yields declined sharply across the board, also affected by the Bank of Japan's decision to leave unchanged its accommodative policy stance.
- Elsewhere, equity prices dropped notably in the US and were mixed across Europe, while oil prices ticked down.
- Today, the ECB releases the minutes of its last meeting, where the central bank noted that it intends to hike rates by 50 bp “for some time”, a guidance reiterated by the Bank of France’s governor, Villeroy de Galhau, on Wednesday.