Financial Markets Daily Report23 February 2024
In yesterday’s session, a mixed release of February’s flash PMIs and a patient tone on inflation from the ECB, according to the last meeting minutes, were the main drivers in financial markets. Sovereign yields edged down in the euro area while increasing in the short end of the US treasury curve. Stock indices managed to advance across the board.
- In yesterday’s session, a mixed release of February’s flash PMIs and a patient tone on inflation from the ECB, according to the last meeting minutes, were the main drivers in financial markets. Sovereign yields edged down in the euro area while increasing in the short end of the US treasury curve. Stock indices managed to advance across the board.
- PMIs showed that the US economy is growing at a solid pace (Composite 51.4, down from 52.0 in January but above the 50.8 averaged in Q4) with similar levels in the manufacturing and services indices (51.5 and 51.3, respectively). In the euro area, the Composite Index rose 1 point to 48.9 but remains in the contractionary territory.
- On monetary policy, the ECB last meeting minutes showed that Governing Council members celebrate the fall seen in inflation but remain cautious on cutting interest rates. The rapid wage growth and abundant domestic price pressures are an upside for the fragile return of inflation to 2%.