Financial Markets Daily Report19 April 2023
Caution continued to set the tone in financial markets amid mixed corporate profits releases and hawkish comments by US Federal Reserve members. In particular, Raphael Bostic argued in favor of a rate hike in May’s meeting, and pausing there, while James Bullard leaned towards bringing interest rates towards the 5.50-5.75% target range.
- Caution continued to set the tone in financial markets amid mixed corporate profits releases and hawkish comments by US Federal Reserve members. In particular, Raphael Bostic argued in favor of a rate hike in May’s meeting, and pausing there, while James Bullard leaned towards bringing interest rates towards the 5.50-5.75% target range.
- On the data front, April ZEW survey figures for Germany and the euro area deteriorated, led by the expectations subcomponent. In this context, sovereign yields remained fairly unchanged in both sides of the Atlantic and stock indices rose modestly across advanced economies.
- In China, the Shanghai index edged up after the better-than-expected GDP data for Q1. In FX markets, the US dollar weakened against most of its peers and the euro fluctuated slightly below the $1.10 threshold.
- Today the focus will be on March final HICP figures for the euro area and the Beige Book release from the Fed.