European markets remain stoic following US CPI release

Swissquote Bank Research Team Swissquote Bank Ltd

Markets were waiting for US January CPI thinking it would be decisive for the global outcome of Wednesday’s journey. In the end, even if the US CPI Y/Y came out at 2.10% (expected at 1.90%; M/M: 0.50% vs 0.30% expected), European markets extended current week’s rally, with the Euro Stoxx 50 ending at 3’370 (+0.87%), CAC 40 5’165 (+1.10%), DAX 12’339 (+1.17%), IBEX 35 9’686 (+0.37%), FTSE MIB 22’434 (+1.81%) along with the FTSE 100 that ended at 7’214 (+0.64%). Switzerland’s SMI followed the same trend, closing at 8’899 (+1.67%). Overall, world stock markets performed well, the MSCI World reached 2’106 points (+1.21%), maintaining its momentum and boosted by Information Technology (+1.84%), Financials (1.69%), Materials (1.29%), Consumer Discretionary (1.28%), Health Care (+1.28%) and Energy (+1.14%). Lagers were Telcos (-0.22%) and Real Estate (-0.06%).

As we see a US 10-year Treasury note jumping up to 2.91% (+2.57%), a 4-year high, 10-year treasuries in the Eurozone slightly increased up to 0.757 (+0.98%), highest rates since September 2015, thus confirming that we might be gradually witnessing a change in the era of global bond market.

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Swissquote Bank Research Team

Swissquote Bank Ltd

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