Sentiment recovered during yesterday’s session, as investors digested the announcement that US tariffs on Mexico and
Canada will be delayed for at least one month. Trade war uncertainty, however, concentrated in Asia, as China announced
retaliatory tariffs on targeted products coming from the US, to take effect next Monday.
US sovereign bonds yields fell as December job market data showed a gradual slowdown in job openings, supporting the
Fed's view that labor market conditions continue to normalize. In equities, stock markets registered gains, especially the
Nasdaq, where large cap firms advanced firmly as some revenue forecasts were promising.
In the euro area, sovereign bond yields were mostly unchanged, ahead of potential news from US tariffs policy. Equities
registered some gains, led by Spanish Ibex 35. In currency markets, the euro appreciated slightly against the dollar, and in
commodities, European gas reference prices registered losses as forecasts announced warmer temperatures.