Financial Markets Daily Report
04 desembre 2023

Euro area and US sovereign bond yields continued to fall during Friday's session as investors continue to expect interest rate cuts by mid-2024. Speaking last Friday, Federal Reserve chair Jerome Powell remarked that policy is "well into restrictive territoy" further fueling the rally in bond markets.

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  • Euro area and US sovereign bond yields continued to fall during Friday's session as investors continue to expect interest rate cuts by mid-2024. Speaking last Friday, Federal Reserve chair Jerome Powell remarked that policy is "well into restrictive territoy" further fueling the rally in bond markets.
  • Stocks rallied on both sides of the Atlantic, with the S&P 500 hitting its highest level since March 2022 and the Ibex 35 extending its gains to its maximum in 5 years. The US dollar slighlty weakened with the DXY index falling 0.22%. In commodities markets, Brent slipped to below $80 a barrel while European gas prices recovered slightly.
  • This week, the focus will be on US November employment data (unemployment rate expected to remain unchanged from October at 4.9%) and University of Michigan sentiment indicators, all released on Friday.  ECB's Lagarde will speak today giving further clues to the future path of monetary policy. 
     
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