Financial Markets Daily Report12 January 2022
In yesterday's session, investors traded with a risk on mood and, in stock markets, took advantage of recent declines to “buy the dip”, particularly in the US technology sector.
- In yesterday's session, investors traded with a risk on mood and, in stock markets, took advantage of recent declines to “buy the dip”, particularly in the US technology sector.
- In his congressional hearing, Jerome Powell said that he expected the omicron impact on the economy to be short-lived and not derail plans for hiking rates this year. He also noted that inflation should peak in the middle of the year.
- In this context, yields on 10-year sovereign bonds were broadly stable across the euro area while decreased modestly in the US. In FX markets, the US dollar weakened against most advanced and emerging economies' currencies and the euro fluctuated near $1.14.
- Today the focus will be on the euro area industrial production for November and the US CPI figure for December (Bloomberg consensus expects general and core CPI to raise by 0.2 and 0.5pp to 7.0% and 5.4% yoy, respectively).