Financial Markets Daily Report29 February 2024
Yesterday’s session in financial markets was a quiet one without any major macroeconomic data releases and with the Q4 2023 corporate earnings season nearing its end. All eyes remain attentive to today’s release of January’s US PCE deflator, the Fed’s favored inflation gauge, and some euro area countries’ CPI.
- Yesterday’s session in financial markets was a quiet one without any major macroeconomic data releases and with the Q4 2023 corporate earnings season nearing its end. All eyes remain attentive to today’s release of January’s US PCE deflator, the Fed’s favored inflation gauge, and some euro area countries’ CPI.
- In this context, euro area sovereign bond yields were mostly unchanged and fell slightly in the US. Meanwhile, euro equity indices were generally flat, and US indices posted some small losses led by interest-rate sensitive technology stocks ahead of inflation data. Oil Brent prices traded around $83/barrel and European natural gas rose above 25/Mwh.
- On the data front, US 4Q GDP was revised slightly downwards, from 0.81% to 0.79% qoq (from 3.3% to 3.2% qoq SAAR), without any major impact on markets. Remarks from Fed and ECB officials yesterday echoed previous messages on the need for stronger evidence inflation has returned sustainably to the target before cutting rates.