Financial Markets Daily Report12 January 2024
In yesterday’s session, investors took a mildly positive view of December’s US CPI report, which confirmed the disinflationary momentum in the US economy, even though the headline figure was higher than expected. Government bond yields fell on the news and the market's discounted probability of a Fed rate cut in March rose.
- In yesterday’s session, investors took a mildly positive view of December’s US CPI report, which confirmed the disinflationary momentum in the US economy, even though the headline figure was higher than expected. Government bond yields fell on the news and the market’s discounted probability of a Fed rate cut in March rose.
- Stock markets’ reaction was less rosy, with major European indices falling across the board, while US indices were flat. For another day, Japanese equities were the biggest gainers among developed markets, while major developing market indices outperformed and posted broad-based gains.
- In the FX markets, the dollar barely moved on the news: it weakened slightly against the yen and renminbi, but remained flat against the euro. In commodity markets, the Brent oil benchmark rose as the attacks in the Red Sea escalated and the risk premium increased.