Financial Markets Daily Report
20 marzo 2024

In yesterdays session monetary policy continued to take center stage in financial markets. Investors positioned themselves ahead of todays US Federal Reserve meeting (where no change in interest rates is expected and the focus will be placed on the dot plot) and weighed comments from ECB officials.

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  • In yesterdays session monetary policy continued to take center stage in financial markets. Investors positioned themselves ahead of todays US Federal Reserve meeting (where no change in interest rates is expected and the focus will be placed on the dot plot) and weighed comments from ECB officials.
  • In particular, Kazaks, de Cos and de Guindos seem happy with the current financial market implied interest rate cuts, which are expected to start in Junes meeting.
  • In this context, sovereign bond yields edged modestly lower on both sides of the Atlantic, while euro area peripheral spreads widened mildly. In equity markets, indices rose in advanced economies and declined in emerging Asia and Latin America. Elsewhere, the US dollar strengthened against most currencies and the euro fluctuated below $1.09.
  • Today the focus will also be on the euro area preliminary March Consumer Confidence index.
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