Financial Markets Daily Report 29 April 2022
In yesterday's session, investors traded with an optimistic tone amid better-than-expected corporate results and despite the contraction of the US GDP in Q1 (-1.4% QoQ SAAR from 6.9% in Q4), which was affected by the change in inventories and a drag from net exports, while domestic demand remained strong.
- In yesterday's session, investors traded with an optimistic tone amid better-than-expected corporate results and despite the contraction of the US GDP in Q1 (-1.4% QoQ SAAR from 6.9% in Q4), which was affected by the change in inventories and a drag from net exports, while domestic demand remained strong.
- In this context, stock indices rose across the board, with advances being particularly pronounced in the US. In fixed-income markets, yields on sovereign bonds surged in the euro area (the German bund rose by 10bp to 0.90%) and the US yield curve flattened.
- Elsewhere, the USD strengthened against most advanced economies’ currencies and the euro fluctuated around $1.05. In energy markets, Brent prices rose while European gas prices moderated towards €100/MWh.
- Today the focus will be on the release of several euro area economies' GDP and inflation figures.