Financial Markets Daily Report23 December 2022
Risk aversion returned to the fore during a session characterized by low volumes in the run-up to the holiday season. Investors continued to reassess their expectations about monetary policy tightening amid hawkish commentary from some ECB officials and robust economic data in the US (e.g., new jobless claims and the upward revision in Q3 GDP).
- Risk aversion returned to the fore during a session characterized by low volumes in the run-up to the holiday season. Investors continued to reassess their expectations about monetary policy tightening amid hawkish commentary from some ECB officials and robust economic data in the US (e.g., new jobless claims and the upward revision in Q3 GDP).
- In Europe, ECB VP Luis de Guindos reiterated the ECB is likely to continue rising policy interest rates by 50 bp, adding that this pace may become the standard as officials maintain their fight against persistent inflationary pressures.
- In this context, sovereign bond yields went up while the USD appreciated modestly against its peers. Equity prices declined in both Europe and in the US but rebounded in China, after the authorities signaled prioritizing economic growth heading into 2023. Elsewhere, natural gas prices fell for a fifth day in Europe.
- The next release of the Daily Report will be on January 5. We wish you a happy festive season and a joyful New Year.