Financial Markets Daily Report29 January 2024
In the final session of the week, market sentiment was mixed on both sides of the Atlantic. In Europe, government bond yields remained fairly flat following Thursday’s ECB meeting, after which investors see a first rate cut in April as more plausible. Major European stock market indices rallied on this expectation, posting a week of strong gains.
- In the final session of the week, market sentiment was mixed on both sides of the Atlantic. In Europe, government bond yields remained fairly flat following Thursday’s ECB meeting, after which investors see a first rate cut in April as more plausible. Major European stock market indices rallied on this expectation, posting a week of strong gains.
- In the US, government bond yields rose slightly, mainly due to concerns about the supply of government debt, as Friday’s PCE data for December confirmed that inflation continues to cool, despite a marginal increase in the monthly data. US equity indices fell slightly on gloomy sales forecasts from some technology companies.
- In the FX markets, the USD weakened slightly on the inflation news. In commodities, oil prices rose as solid US growth and Chinese stimulus boosted demand expectations, while concerns over the Red Sea provided further support. This week, all eyes will be on the FOMC meeting on Wednesday; and Eurozone GDP on Tuesday and CPI on Friday.