Financial Markets Daily Report11 January 2024
Yesterday’s session saw investors in a wait-and-see mode ahead of today’s key US inflation report, which is expected to shed some light on the Fed’s next interest rate decisions. Sovereign bond yields rose slightly across the board as Fed’s Williams cooled expectations of imminent rate cuts, saying the Fed still has room to cover to reach inflation’s 2% target.
- Yesterday’s session saw investors in a wait-and-see mode ahead of today’s key US inflation report, which is expected to shed some light on the Fed’s next interest rate decisions. Sovereign bond yields rose slightly across the board as Fed’s Williams cooled expectations of imminent rate cuts, saying the Fed still has room to cover to reach inflation’s 2% target.
- In the stock markets, major indices were broadly flat as the correlation between equities and bonds remains quite strong. Japan’s Nikkei 225 index was the biggest gainer, reaching multi-decade highs on the back of worse-than-expected wage data for November.
- In the FX markets, the yen weakened on the news as the BoJ closely monitors wages to gauge inflationary pressures and determine its monetary policy stance. The euro, on the other hand, strengthened against the USD. In the commodity markets, Brent oil prices fell after a surprise rise in US crude inventories raised concerns about demand.