Financial Markets Daily Report02 February 2024
Investors’ mood was mixed yesterday as they grappled with a raft of data. In the US, Treasury yields fell again despite the Fed's hawkish tone on Wednesday, weighed down by concerns about some regional US banks and higher than expected jobless claims, although Q4 productivity and labour cost data were encouraging for disinflationary momentum.
- Investors’ mood was mixed yesterday as they grappled with a raft of data. In the US, Treasury yields fell again despite the Fed’s hawkish tone on Wednesday, weighed down by concerns about some regional US banks and higher than expected jobless claims, although Q4 productivity and labour cost data were encouraging for disinflationary momentum.
- In the Eurozone, government bond yields were flat after January’s inflation figures were broadly in line with expectations, but the core indicator showed some stickiness, pointing to ongoing price pressures that could justify the ECB's announced caution on rate cuts.
- Equity markets remained largely focused on the earnings season. European indices fell, weighed down by some financial companies that missed expectations, while US indices rose, driven by good results from some large technology companies. In commodities, the Brent oil benchmark fell on news of progress in Gaza ceasefire talks.