Financial markets traded without a clear direction ahead of the US CPI report expected today. In the US, assets had a choppy trading session, as early optimism driven by unexpectedly low US wholesale inflation in December (PPI +0.2% mom vs. +0.4% expected) was muted later on. In this context, US sovereign bonds and equities closed the session flat.
In the euro area, sovereign bonds yields edged higher, with periphery countries’ risk premia narrowing by 2bp. Euro area stock markets experienced gains, following dovish remarks from ECB officials. Japanese equities registered some losses amid expectations of a rate hike next week.
In currency markets, the rise in euro area sovereign yields supported the euro which appreciated slightly against the dollar, closing around 1.03. In commodities, Brent prices registered some losses, amid progress in ceasefire talks between Hamas and Isreal.