Financial Markets Daily Report
21 February 2023

In a quiet session due to the President's Day holiday in the US, traders continued to weigh incoming economic data (eg consumer confidence in the eurozone rose to -19 from -20.7) with the hawkish tone from central bank officials. In this context, yields on sovereign bonds ticked up in the euro area, nearing year-to-date highs.

FMDR
  • In a quiet session due to the President's Day holiday in the US, traders continued to weigh incoming economic data (eg consumer confidence in the eurozone rose to -19 from -20.7) with the hawkish tone from central bank officials. In this context, yields on sovereign bonds ticked up in the euro area, nearing year-to-date highs.
  • In stock markets, European indices fell slightly while Asian equities recovered, more notably in Shanghai, as investors expect the Chinese economy to recover from the timid economic growth registered in 2022. 
  • Elsewhere, the euro weakened against most advanced economies' currencies and fluctuated below $1.07 while, in commodity markets, the price of the barrel of Brent rose above $84.
  • Today the focus will be on the flash February PMIs for the main advanced economies and on the Zew expectation indices for Germany and the euro area.
     
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