Financial Markets Daily Report 07 March 2023
The hawkish tone set by central bank officials continued to center the stage in financial markets at the start of the week. In particular, ECB chief economist Phillip Lane signaled that further interest rate hikes beyond next week's meeting will be appropriate to ease inflationary pressures.
- The hawkish tone set by central bank officials continued to center the stage in financial markets at the start of the week. In particular, ECB chief economist Phillip Lane signaled that further interest rate hikes beyond next week's meeting will be appropriate to ease inflationary pressures.
- In addition, Austrian central bank chief Robert Holzmann favored 50bp hikes in every meeting until July. In this context, yields on sovereign bonds rose, particularly so in the euro area and in the short end of the yield curves. In FX markets, the euro strengthened against most of its peers and fluctuated slightly below $1.07.
- In stock markets, volatility measured with the VIX index declined and equities advanced in most euro area trading floors while being mixed in the US. European TTF natural gas prices declined towards 42€/MWh.
- Today the focus will be on the Federal Reserve President Powell intervention before the Senate banking panel.