Financial Markets Daily Report 03 April 2023
On Friday, the release of HICP inflation data in the euro area centered the stage in financial markets. Headline inflation fell sharply from 8.5% to 6.9% y/y in March, but core inflation ticked up to 7.5% in a sign that price pressures are persisting. In this context, ECB member Villeroy de Galhau said there are still some more rate hikes to do.
- On Friday, the release of HICP inflation data in the euro area centered the stage in financial markets. Headline inflation fell sharply from 8.5% to 6.9% y/y in March, but core inflation ticked up to 7.5% in a sign that price pressures are persisting. In this context, ECB member Villeroy de Galhau said there are still some more rate hikes to do.
- Sovereign yields declined in both sides of the Atlantic and euro area peripheral spreads edged down. In stock markets, equities rose modestly in the euro area and more markedly in the US, where a lower-than-expected PCE core inflation print (4.6% y/y in March) boosted sentiment, more notably in the tech sector.
- During the weekend the OPEC+ decided to cut production by 1 million barrels a day, an action that this morning has pushed Brent oil prices up by 5% to $84 a barrel.
- This week the focus will be on March's ISM (Wed.) and employment report (Fri.) in the US.