Financial Markets Daily Report07 February 2023
In the beginning of the week, investors continued to digest the US employment figures report released on Friday, which suggested that the tightness in the labor market is far from moderating at the pace the Fed would like to see.
- In the beginning of the week, investors continued to digest the US employment figures report released on Friday, which suggested that the tightness in the labor market is far from moderating at the pace the Fed would like to see.
- In this sense, Atlanta’s Fed Chairman, Raphael Bostic, said that the Fed is indeed likely to raise rates higher as a result of the upside surprise in the labor market. By contrast, in the euro area, ECB member Ignazio Visco warned about the risks that a rapid pace of tightening could have on the economy. Today, Jerome Powell is due to give a speech.
- In this context, yields on sovereign bonds continued to rise in both sides of the Atlantic and equities declines in most trading floors. In FX markets, the US dollar strengthened against most advanced and emerging economies’ currencies and the euro fluctuated below $1.08.
- Today, December industrial production data for Spain will be released.