Financial Markets Daily Report 20 April 2023
In yesterday’s session investors traded cautiously amid mixed corporate profits reports and lingering worries of persistent inflationary pressures, after the upside surprise in the CPI March data in the UK. Also, the US Beige Book released yesterday stated that the US economy stalled in recent weeks, with slowing hiring and inflation.
- In yesterday’s session investors traded cautiously amid mixed corporate profits reports and lingering worries of persistent inflationary pressures, after the upside surprise in the CPI March data in the UK. Also, the US Beige Book released yesterday stated that the US economy stalled in recent weeks, with slowing hiring and inflation.
- In this context, stock indices edged modestly up in the euro area but remained flat in the US while declining in EMs. Equity volatility, measured by the VIX Index, continued to ease, reaching a level not seen since January 2022.
- In fixed-income markets, yields on sovereign bonds rose in both sides of the Atlantic, particularly so in the short-end of the curve. In FX markets, the US dollar strengthened against most advanced and emerging economies and the euro fluctuated below $1.10.
- Today the focus will be on the release of the minutes of the March ECB meeting.