Financial Markets Daily Report24 March 2023
Monetary policy decisions remained the key focus for investors on Thursday. The Bank of England and the Swiss National Bank raised rates by 25bp and 50bp to 4.25% and 1.5%, respectively, following the move by the Fed on Wednesday to hike rates by 25bp and to signal that there could be additional increases if financial turmoil recedes.
- Monetary policy decisions remained the key focus for investors on Thursday. The Bank of England and the Swiss National Bank raised rates by 25bp and 50bp to 4.25% and 1.5%, respectively, following the move by the Fed on Wednesday to hike rates by 25bp and to signal that there could be additional increases if financial turmoil recedes.
- In addition, Dutch central bank president Klaas Knot said that further rate hikes are needed to fight elevated inflation and that if the environment allows to do so, reinvestments under the Asset Purchase Programme should end soon.
- In this context, yields on sovereign bonds declined in both sides of the Atlantic while equities were mixed in the euro area and rose modestly in the US, boosted by gains in the tech sector. In FX markets, the euro weakened against most advanced economies’ currencies and fluctuated above $1.08.
- Today the focus will be on March’s flash PMI for the main advanced economies.