Financial Markets Daily Report19 April 2024
In yesterday’s session financial markets traded on the diverging outlook between the Federal Reserve and the ECB. Fed officials highlighted that inflation seems to have gotten stuck in the US and so they are in no rush to cut rates, while ECB members all pointed to June as the month they are looking at to lower interest rates.
- In yesterday’s session financial markets traded on the diverging outlook between the Federal Reserve and the ECB. Fed officials highlighted that inflation seems to have gotten stuck in the US and so they are in no rush to cut rates, while ECB members all pointed to June as the month they are looking at to lower interest rates.
- In this context, US equities edged lower extending losses for the fifth consecutive day, while euro area equities rallied, with the Ibex-35 leading across the region supported by financials. Sovereign bond yields edged higher in the euro area, and rose modestly in the US, with the 2-year treasury yield coming close to 5%.
- Elsewhere, the US dollar rose again reversing the previous’ day losses, leaving the euro around $1,06. In commodities, Brent was mostly unchanged at $87/barrel, but is trading around $88/barrel this morning following an overnight Israeli attack on Iran.