Financial Markets Daily Report14 March 2024
In yesterday’ session, investors continued to digest this week’s US CPI report, which showed the “last mile” of bringing inflation back to target is proving to be the hardest. Markets were mixed, with sovereign bond yields advancing modestly on both sides of the Atlantic, while equities posted slight gains in the euro area and small losses in the US.
- In yesterday’ session, investors continued to digest this week’s US CPI report, which showed the “last mile” of bringing inflation back to target is proving to be the hardest. Markets were mixed, with sovereign bond yields advancing modestly on both sides of the Atlantic, while equities posted slight gains in the euro area and small losses in the US.
- On the macro data front, euro area industrial production fell in January 6.7% yoy (-3.0% expected) down from +0.2% growth in December. Additionally, the ECB published the revision to its operational framework, keeping the depo rate as its main monetary policy tool and reducing its spread with the refi rate to 15 bp (starting on September 2024).
- In commodity markets, the price of a barrel of Brent rose by almost 3% following a Ukrainian attack on a large Russian refinery and a larger-than-expected drop in US gasoline inventories.
- Today’s focus will be on US February retail sales and the PPI index.