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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