Financial Markets Daily Report19 February 2024
In the last session of the week, higher-than-expected US PPI inflation data in January (0.3% m/m from -0.1% in the previous month) pushed back the expectations of interest rate cuts from the Federal Reserve and favored an increase in sovereign bond yields on both sides of the Atlantic.
- In the last session of the week, higher-than-expected US PPI inflation data in January (0.3% m/m from -0.1% in the previous month) pushed back the expectations of interest rate cuts from the Federal Reserve and favored an increase in sovereign bond yields on both sides of the Atlantic.
- Additionally, San Francisco Federal Reserve’s President Mary C. Daly said that there is still work to do on inflation, which suggests that the Fed is in no rush to start easing the stance of monetary policy. In this context, equity prices edged down in the US, weighed by the rate sensitive sectors, while increasing modestly in the euro area.
- Elsewhere, Brent oil prices ended higher as geopolitical tensions in the Middle East more than offset a forecast from the International Energy Agency for slowing demand.
- This week the focus will be on the main advanced economies’ flash PMIs for February (Thursday).