Financial Markets Daily Report08 February 2023
Yesterday investors continued to digest the messages from central bank officials, who, in general, have toughened the stance against inflation and show a more hawkish tone. In this context, yields on sovereign bonds rose further in the eurozone, more notably in the periphery, while remaining broadly unchanged in the US.
- Yesterday investors continued to digest the messages from central bank officials, who, in general, have toughened the stance against inflation and show a more hawkish tone. In this context, yields on sovereign bonds rose further in the eurozone, more notably in the periphery, while remaining broadly unchanged in the US.
- Jerome Powell explained that the last release of the labor market reports shows that the battle against inflation will "take quite a bit of time". Minneapolis Fed President Neel Kashkari shared a similar view and seemed keen to bring interest rates above 5%. In the eurozone, Joachim Nagel said that further and significant rate hikes are needed.
- In equity markets, stock indices ticked up in the euro area and rose by more than 1% in the US, boosted by the energy and technology sectors. In commodity markets, the price of the barrel of Brent surged by more than 3% as investors expect a recovering demand from China.