Financial Markets Daily Report
11 enero 2022

In yesterday's session investors traded cautiously amid expectations of a faster monetary policy tightening from the Fed. Implicit interest rates are discounting the first rate hike in the spring, earlier than previously expected. The inflation report to be released this Wednesday and the speech by the Fed head Powell in Congress today will be key.

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  • In yesterday's session investors traded cautiously amid expectations of a faster monetary policy tightening from the Fed. Implicit interest rates are discounting the first rate hike in the spring, earlier than previously expected. The inflation report to be released this Wednesday and the speech by the Fed head Powell in Congress today will be key.
  • In this context, stock indices edged down across the board, with losses being more pronounced in the euro area than in the US. In fixed-income markets, German yields ticked up and the US Treasury yield curve flattened due to a rise of the short end.
  • In commodity markets, prices of the European gas and the barrel of Brent declined amid concerns of the impact that omicron will have on energy demand.
  • This morning we knew that Spain's industrial production for November rose by 4.5% mom (consensus expected +0.4%).  
     
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