Financial Markets Daily Report18 January 2022
Financial markets recorded a positive start of the week, supported by the better-than-expected Q4 GDP print in China (4% y/y) and positive expectations for the corporate earnings season later this week.
- Financial markets recorded a positive start of the week, supported by the better-than-expected Q4 GDP print in China (4% y/y) and positive expectations for the corporate earnings season later this week.
- Stocks rose modestly across Europe and EMs, with tech, healthcare and energy shares outperforming. In the sovereign debt markets, the 10-year German Bund yield rose by 0.02 p. p. to -0.03%, the highest level since mid-2019, while euro area peripheral spreads widened modestly. In the US, markets were closed due to a public holiday.
- In commodities, the price of the Brent rose further, reaching a 7-year high. The upswing reflects better expectations among investors about the evolution of the energy demand as well as the escalation of global geopolitical risks.
- Today the Bank of Japan is announcing monetary policy decisions. On the data front, Germany’s ZEW business survey for January will be released.