Financial Markets Daily Report15 January 2024
In the last session of the week, investors focused their attention on the disinflationary pressures in the US, after December PPI unexpectedly declined by 0.1% m/m (-0.1% in the previous month). In this context, yields on sovereign bonds declined on both sides of the Atlantic, particularly so in the short-end of the curve.
- In the last session of the week, investors focused their attention on the disinflationary pressures in the US, after December PPI unexpectedly declined by 0.1% m/m (-0.1% in the previous month). In this context, yields on sovereign bonds declined on both sides of the Atlantic, particularly so in the short-end of the curve.
- Nevertheless, central bank officials continue to push against the expectation of early interest rate cuts and, on Friday, ECB Chief economist Phillip Lane said that interest rate cuts are not a near term topic for debate.
- Elsewhere, stock indices rose across the board and the US dollar strengthened against most advanced and emerging economies' currencies.
- This week the focus will be on December retail sales and industrial production data for the US (Wed.), the preliminary University of Michigan sentiment indicator for January (Fri.) and Q4 GDP data in China (Wed.).