Financial Markets Daily Report26 January 2023
Investors traded yesterday with a positive tone amid somewhat better-than-expected corporate earnings results in the US and expectations of a moderation in the pace of monetary policy tightening. In Germany, the Ifo expectations’ index rose in January, but remained at very low levels.
- Investors traded yesterday with a positive tone amid somewhat better-than-expected corporate earnings results in the US and expectations of a moderation in the pace of monetary policy tightening. In Germany, the Ifo expectations’ index rose in January, but remained at very low levels.
- In this context, stock indices declined modestly in both sides of the Atlantic, with the S&P 500 rallying throughout the session and almost erasing the losses registered in the opening of the day. In fixed-income markets, yields on sovereign bonds fell in the US, particularly so in the short end of the curve, and ticked up in the euro area.
- On monetary policy, the Bank of Canada hiked interest rates by 25bp to 4.5%, as expected, but surprised by signaling it expects to leave rates unchanged to assess the evolution of the economy.
- 2022 Q4 US GDP figures will be released today, and consensus expects a decline in growth from 3.2% to 2.6% SAAR.