Financial Markets Daily Report

Financial Markets Daily Report
03 febrero 2023

Risk appetite continued to set the tone across financial markets on Thursday, fueled by expectations that the cycle of monetary policy tightening may be nearing its end.

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  • Risk appetite continued to set the tone across financial markets on Thursday, fueled by expectations that the cycle of monetary policy tightening may be nearing its end.
  • In the eurozone, the ECB hiked policy rates by 50 bp (depo: 2.5%) while indicating its intentions for a similar move in March. At the same time, the central bank noted that the risks around the inflation outlook have become more balanced and added that upcoming decisions will be based on data. The BoE also announced a 50 bp rate hike.
  • In this context, sovereign bond yields fell across the board, more notably in eurozone periphery countries, while the EUR depreciated modestly against peers, trading back to 1.09 against the USD. In addition, stocks rose strongly in both sides of the Atlantic, in the US led by the tech sector.
  • Today, the employment report for January will be released in the US.
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