Financial Markets Daily Report31 January 2022
Financial markets closed last week with mixed results, with equity prices falling across Europe and EMs but recording a late-session rally in the US, as investors weighed the prospect of a more aggressive withdrawal of monetary policy stimulus by the Fed with upbeat earnings reports from some key US tech firms (e.g. Apple).
- Financial markets closed last week with mixed results, with equity prices falling across Europe and EMs but recording a late-session rally in the US, as investors weighed the prospect of a more aggressive withdrawal of monetary policy stimulus by the Fed with upbeat earnings reports from some key US tech firms (e.g. Apple).
- Sovereign bond yields rose modestly across Europe, with Q4 GDP readings showing better-than-expected outturns in Spain and France but a weak performance in Germany. Over the weekend, the Socialist Party secured an outright majority in Portugal’s general election while the Italian lawmakers elected Mattarella for a second term as President.
- The key event this week is the first monetary policy meeting by the ECB and the Bank of England, both on Thursday. In addition, Q4 GDP (Monday) and January flash inflation (Wednesday) will be released for the eurozone, while in the US, the January employment report will be published on Friday.