Financial Markets Daily Report 24 January 2022
Financial markets closed last week with a sell-off session where investors showed a preference for safe-haven assets.
- Financial markets closed last week with a sell-off session where investors showed a preference for safe-haven assets.
- Geopolitical uncertainty together with the expected monetary policy tightening by the Fed extended losses in the main international stock indices. The sectors most affected were the communication services and consumer discretionary in the US and the energy and travel industries in Europe.
- In fixed income markets, yields on sovereign bonds declined in Germany and in the US. Euro area peripheral spreads widened modestly ahead of today's vote for the Italian Presidency and Sunday's Portuguese general elections. In FX markets, the euro strengthened modestly against the USD and fluctuated above $1.13.
- This week the focus will be on January's flash PMIs for the main advanced economies (today), on the Federal Reserve meeting (ending on Wednesday) and on US and Spanish 4Q GDP figures (Thursday and Friday, respectively).