Financial Markets Daily Report 27 January 2023
Hopes for a so-called “soft landing” continued to lift spirits across financial markets on Thursday, following stronger-than-expected economic data as well as solid Q4 earnings results by some large US tech firms.
- Hopes for a so-called “soft landing” continued to lift spirits across financial markets on Thursday, following stronger-than-expected economic data as well as solid Q4 earnings results by some large US tech firms.
- On the data front, US real GDP rose at a 2.9% annualized rate in Q4, above expectations and implying only a modest slowdown relative to the 3.2% gain in Q3. In addition, new jobless claims surprised by falling in the previous week (to the minimum level since April) while new home sales ended 2022 on a strong footing (2.3% m/m in December).
- In this context, equities rose across the board, led by stocks in the US. Sovereign bond yields went up while the USD appreciated modestly against its peers. Elsewhere, oil prices ticked up while natural gas prices fell further, with 1-month gas deliveries in the US trading below 3 USD per million British thermal units.
- This morning, data showed Spanish GDP rose by 0.2% q/q in Q4, the same pace as in Q3 (revised up from 0.1%).