Financial Markets Daily Report25 January 2024
In yesterday’s session, global stock markets advanced as investors increased risk appetite following reports about a Chinese stimulus to support the local stock market, a better-than-expected earnings season in the U.S. so far, and a favorable US PMI reading. Sovereign bond yields edged lower in the euro area and slightly rose in the U.S.
- In yesterday’s session, global stock markets advanced as investors increased risk appetite following reports about a Chinese stimulus to support the local stock market, a better-than-expected earnings season in the U.S. so far, and a favorable US PMI reading. Sovereign bond yields edged lower in the euro area and slightly rose in the U.S.
- Euro area January PMIs remain below 50, but the composite advanced from 47.6 last month to 47.9, while the manufacturing component rose from 44.4 to 46.6, with services falling from 48.8 to 48.4. US data instead showed expansion, with the composite PMI rising from 50.9 to 52.3, and manufacturing and services also above 50.
- Elsewhere, crude prices rose above the $80/barrel mark, and the dollar lost some ground to the euro. Today, US 4Q GDP data will be released, and the ECB Governing Council meets. Markets are not expecting any changes to interest rates in today's meeting but will be attentive to Lagarde’s speech for clues about the future path of interest rates.