Financial Markets Daily Report 22 December 2022
Volatility declined during a risk-on session on Wednesday, with investors sentiment boosted by a mix of positive consumer confidence data, plummeting housing indicators and upbeat earnings from some large US retailers.
- Volatility declined during a risk-on session on Wednesday, with investors sentiment boosted by a mix of positive consumer confidence data, plummeting housing indicators and upbeat earnings from some large US retailers.
- In particular, confidence among US households improved to an eight-month high in December (108.3 from 101.4) as inflation expectations retreated and the labor market remained strong, according to the Conference Board. In Europe, consumer confidence in Germany also improved, rising from -40.1 to -37.8 heading to January, according to the GfK.
- In this context, stocks rose across the board, erasing some of the losses of recent sessions. Sovereign bond yields were little changed. In Japan, the yen also stabilized after the notable appreciation recorded earlier on the week.
- In commodity markets, oil prices rose following data showing a larger-than-expected draw in U.S. crude stockpiles last week. By contrast, natural gas prices in Europe fell further and traded below 100€/MWh (for the Dutch TTF).