Financial Markets Daily Report24 January 2024
Investors traded cautiously in yesterday’s session as they await the ECB’s decision and US macro data in the coming days. Sovereign bond yields edged higher across the board, while stock markets were mixed, falling in the euro area and modestly rising in the US. Chinese stocks rallied on reports of a government stimulus to stabilize stock markets.
- Investors traded cautiously in yesterday’s session as they await the ECB’s decision and US macro data in the coming days. Sovereign bond yields edged higher across the board, while stock markets were mixed, falling in the euro area and modestly rising in the US. Chinese stocks rallied on reports of a government stimulus to stabilize stock markets.
- On the macro front, euro area January consumer confidence fell from -15.0 to -16.1, vs. -14.3 expected. The ECB’s Bank Lending Survey showed banks expect a small rebound in the demand for loans following a quarter of tighter conditions. In the US, the Richmond Fed Manufacturing Index dropped for the fourth consecutive month.
- Elsewhere, the US dollar strengthened against most peers, leaving its cross with the euro at around $1.085. Oil prices dropped on news of rising supply in the U.S., Libya and Norway, and European natural gas prices extended declines. Today, markets will be looking at PMIs for France, Germany and the euro area group.