Financial Markets Daily Report 19 December 2022
Volatility and risk aversion continued to set the tone during the last session of the week, as investors were still digesting the hawkish rhetoric during the last monetary policy meetings of 2022 at major central banks.
- Volatility and risk aversion continued to set the tone during the last session of the week, as investors were still digesting the hawkish rhetoric during the last monetary policy meetings of 2022 at major central banks.
- In public debt markets, yields on sovereign bonds rose further, more notably across the eurozone periphery, sending risk premia higher. Equity indices also edged down across the board while the USD appreciated modestly against its peers and fluctuated below 1.06 relative to the EUR.
- Elsewhere, oil prices ticked down, trading below 80$/barrel for the Brent, with the focus on the demand outlook for advanced economies and China, where authorities pledged during the weekend to support growth in 2023.
- This week, the IFO business survey for December is released in Germany today while the economic sentiment indicator for the eurozone is published on Tuesday. The Bank of Japan is announcing policy decisions tomorrow.