Financial Markets Daily Report20 December 2023
In yesterday's session investors traded with a somewhat risk-on mood as they downplayed the messages from central bank officers. From the US Federal Reserve, Raphael Bostic said that inflation will come down relatively slowly, which will not urge a fast change from the restrictive monetary policy stance.
- In yesterday's session investors traded with a somewhat risk-on mood as they downplayed the messages from central bank officers. From the US Federal Reserve, Raphael Bostic said that inflation will come down relatively slowly, which will not urge a fast change from the restrictive monetary policy stance.
- In the euro area, François Villeroy de Galhau sounded a little bit more dovish and said that interest rate cuts, barren any surprise, will not be hiked again and will be probably cut some time in 2024. In this context, yields on sovereign bonds declined markedly in the euro area while remaining barely unchanged in the US.
- Stock indices rose across the board, with an outperformance of the Japanese Nikkei 225 following the BoJ's decision to keep rates in negative territory. The US dollar weakened and the euro fluctuated below $1.10. In oil markets, the price of the barrel of Brent rose towards $80 amid disruption in the Red Sea which forced some vessels to reroute.