Financial Markets Daily Report 23 marzo 2023
The dovish hike delivered by the Federal Reserve and US Treasury Secretary Janet Yellen comments, signaling that regulators are not considering a broad expansion of deposit insurance, centered the stage in financial markets.
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- The dovish hike delivered by the Federal Reserve and US Treasury Secretary Janet Yellen comments, signaling that regulators are not considering a broad expansion of deposit insurance, centered the stage in financial markets.
- The Fed hiked interest rates by 25bp to the range 4.75%-5.00% and signaled that "some more policy firming may be appropriate” in the coming meetings. The dot plot showed that most participants anticipate that an additional 25bp rate hike will take place while no member expects rate cuts in 2023.
- In this context, yields on sovereign bonds plunged in the US and edged up in the euro area while stock indices were mixed. In FX markets, the US dollar weakened against most advanced economies' currencies and the euro fluctuated above $1.08.
- Today the focus will be on the monetary policy meeting at the Bank of England and at the Swiss National Bank.