Financial Markets Daily Report28 January 2022
In yesterday’s session investors continued to digest the outcome of the Fed’s meeting and received positively the US 4Q GDP data (up by 1.7% qoq).
- In yesterday’s session investors continued to digest the outcome of the Fed’s meeting and received positively the US 4Q GDP data (up by 1.7% qoq, see our take here).
- Amid a rise in volatility, stock indices edged up in the euro area and declined in the US. In fixed income markets, the US Treasury curve continued to flatten, with the short-term rising while, in the euro area, peripheral spreads narrowed and core yields edged up modestly.
- In FX markets, the USD strengthened against most currencies, nearing $1.11 against the EUR (lowest since mid-2020).
- Today’s focus will be on the European Commission economic sentiment indicators for January and on 4Q GDP data releases (for Spain and France we already know that GDP grew by 2.0% and 0.7% qoq, respectively). In Italy, the parliament is still in process for electing a new President while Portugal will hold a general election this Sunday.