Financial Markets Daily Report 28 February 2023
Stock markets rebounded at the start of the week, as investors digested a new batch of mixed economic indicators and took advantage of attractive valuations, following the sharp decline in stock indices in recent weeks. Sovereign bond yields ticked down in the US and continued to edge higher across Europe.
- Stock markets rebounded at the start of the week, as investors digested a new batch of mixed economic indicators and took advantage of attractive valuations, following the sharp decline in stock indices in recent weeks. Sovereign bond yields ticked down in the US and continued to edge higher across Europe.
- In particular, the eurozone economic sentiment indicator was lower than expected in February, remaining below its long-term average. In the US, core capital goods orders and pending home sales surprised on the upside.
- In FX markets, the British Pound strengthened against peers after the EU and the UK reached a new deal on post-Brexit trading rules. By contrast, the USD depreciated, trading above 1.06 against the EUR.
- This morning, data showed HICP inflation in Spain picked up to 6.1% y/y in February from 5.9% in January, while in France, it moved up from 7.0% to 7.2%.