Financial Markets Daily Report26 April 2023
Risk aversion returned to the fore during a volatile session on Tuesday, with investors sentiment faltered by the release of weak consumer confidence data and mixed signals from the ongoing Q1 corporate earnings season.
- Risk aversion returned to the fore during a volatile session on Tuesday, with investors sentiment faltered by the release of weak consumer confidence data and mixed signals from the ongoing Q1 corporate earnings season.
- Consumer confidence in the US dropped this month to the lowest level since July 2022 (101.3 from 104 in March, according to the Conference Board) as consumers became more pessimistic about the economic outlook. Concerns about the health of the US banking sector also reignited after the release of weak results from some regional banks.
- In this context, sovereign bond yields edged down notably across the board, driven by fears of a global economic slowdown and a downward revision of investors’ expectations for policy rates ahead. Stocks also closed with losses in most trading floors, led by banks, while the USD appreciated modestly against peers and commodity prices fell.
- Today, the Swedish Riksbank announces monetary policy decisions.