Financial Markets Daily Report04 December 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.
- 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.