Financial Markets Daily Report

Financial Markets Daily Report
04 febrero 2022

Investors traded with caution on Thursday, digesting a hawkish shift by major central banks in Europe and disappointing earnings results from some US tech giants.

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  • Investors traded with caution on Thursday, digesting a hawkish shift by major central banks in Europe and disappointing earnings results from some US tech giants.
  • The ECB confirmed its plans to taper its asset programmes in coming months but did not explicitly rule out a potential interest rate hike this year, after net purchases are ended. Separately, the BoE announced a 25 b. p. hike in the official Bank Rate and confirmed plans to start reducing the size of its balance sheet.
  • Sovereign bond yields continue to rise across Europe, with the 10-year German Bund reaching 0.14%, while spreads across the eurozone periphery widened. In addition, the EUR appreciated (above 1.14 versus the USD) and stocks declined. The Brent price rose further due to ongoing supply worries and extreme weather in the US.
  • Today the key focus is on the US payroll report for January.
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