Financial Markets Daily Report22 February 2024
The hawkish rhetoric from central bank officials was the main driver in yesterday's session, which saw sovereign yields on the rise in the euro area and in the US. In the ECB, Pierre Wunsch said that interest rates might remain at restrictive levels for longer than previously anticipated considering the labor market strength and increasing wages.
- The hawkish rhetoric from central bank officials was the main driver in yesterday's session, which saw sovereign yields on the rise in the euro area and in the US. In the ECB, Pierre Wunsch said that interest rates might remain at restrictive levels for longer than previously anticipated considering the labor market strength and increasing wages.
- In the US, the release of the last Fed meeting minutes showed that most FOMC participants emphasized the risks of easing the monetary policy stance too early, while just a couple of members noted the downside risks to the economy from maintaining rates at the current levels.
- In this context, stock indices managed to register moderate advances in the euro area and were mixed in the US. In FX markets, the US dollar weakened against most peers and the euro traded above $1.08.
- Today the focus will be on February's flash PMIs for the main advanced economies and the ECB last meeting minutes.