Financial Markets Daily Report
24 January 2023

Investors started the week trading with a risk-on mood, taking position ahead of corporate earnings and key economic data to be released this week. Today, the focus will be on the flash PMIs for January, which are expected to edge modestly up in the euro area and in the US, despite remaining below the 50-point expansionary threshold.

FMDR
  • Investors started the week trading with a risk-on mood, taking position ahead of corporate earnings and key economic data to be released this week. Today, the focus will be on the flash PMIs for January, which are expected to edge modestly up in the euro area and in the US, despite remaining below the 50-point expansionary threshold.
  • In this context, yields on sovereign bonds rose moderately in both sides of the Atlantic and euro area peripheral spreads ticked up. In equity markets, stock indices advanced in the euro area and more markedly in the US, led by gains in the tech sector.
  • Elsewhere, the euro strengthened against the US dollar and fluctuated close to $1.09, following a new round of hawkish commentary by ECB officials, including from president Christine Lagarde. In oil markets, the price of the barrel of Brent advanced near 90$/barrel (Brent) as investors expect Chinese demand to recover during 2023.
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