Financial Markets Daily Report23 December 2021
In yesterday's session investors continued to trade with a risk-on mood but with more caution amid rising Covid-19 cases across advanced economies. In addition, some ECB members offered comments with a hawkish tone, opening the door even to a rate hike in 2022 if inflation were to increase further.
- In yesterday's session investors continued to trade with a risk-on mood but with more caution amid rising Covid-19 cases across advanced economies. In addition, some ECB members offered comments with a hawkish tone, opening the door even to a rate hike in 2022 if inflation were to increase further.
- In this context, stock indices rose modestly in the euro area, with the biggest advances registered in France. In fixed-income markets, yields on 10-year sovereign bonds edged up in the euro area, particularly so in Italy, and ticked down in the US.
- In FX markets, the US dollar weakened against most advanced and emerging economies' currencies and the euro fluctuated above $1.13. In commodity markets, the price of the barrel of Brent rose above $75 while European gas prices moderated despite fluctuating close to high record levels.