Financial Markets Daily Report20 February 2024
The week started with a very quiet session, as there were no macroeconomic data releases and the US financial markets were closed due to the President’s day festivity. All eyes will remain attentive to the release of the Fed and ECB last meeting minutes (Wed. and Thu., respectively) and the flash PMIs for the main advanced economies (Thu.).
- The week started with a very quiet session, as there were no macroeconomic data releases and the US financial markets were closed due to the President’s day festivity. All eyes will remain attentive to the release of the Fed and ECB last meeting minutes (Wed. and Thu., respectively) and the flash PMIs for the main advanced economies (Thu.).
- In this context, yields on euro area sovereign bonds ticked modestly up, except in Portugal where the 10-year benchmark decreased 2bp pushing its risk premium below 75bp. Investors continue to expect the first rate cut from the ECB to happen in June and, with 44% probability, in the April meeting.
- In equity markets, the Spanish and Portuguese indices were the best performers in the euro area boosted, among others, by a good performance of the financial sector. Elsewhere, the price of European natural gas fell below 24€/MWh, a level not seen, briefly, since June last year.