Financial Markets Daily Report 06 March 2023
Economic data releases on Friday boosted investors' sentiment and allowed sovereign yields to edge down and equities to advance. Price pressures continue to moderate but remain elevated, according to the ISM prices paid index in the US (which fell from 67.8 to 65.6) and the PPI in the euro area (which declined from 24.5% to 15.0% y/y).
- Economic data releases on Friday boosted investors' sentiment and allowed sovereign yields to edge down and equities to advance. Price pressures continue to moderate but remain elevated, according to the ISM prices paid index in the US (which fell from 67.8 to 65.6) and the PPI in the euro area (which declined from 24.5% to 15.0% y/y).
- Regarding economic activity, the release of final February PMI and ISM showed that most advanced economies are likely to register positive GDP growth rates in Q1. In Spain, the Composite index rose from 51.6 points to 55.7 and in the US, services ISM ticked down to 55.1, still way above the 50-point threshold.
- In commodity markets, the price of TTF natural gas fell to 45€/MWh while Brent prices rose to $85 per barrel.
- This week the focus will be on the hearing from Jerome Powell in Congress (Tuesday & Wednesday), the second estimate of euro area Q1 GDP (Wednesday), and the February employment report in the US (Friday).