UK, inflation slows to 10.1%, better than expected
Consumer prices slow down in Great Britain for the third month in a row. The UK’s main consumer price index rose by 10.1% year on year in January and fell by 0.6% compared to December. The data is better than estimates of a 10.3% year-on-year increase and a 0.4% month-on-month decline versus earlier increases of 10.5% and 0.4%, respectively.
Spread slightly moved to 179 points, yield drops to 4.21%
The spread between BTp and Bund did not move much with the yields of the bonds of the euro area slightly retreating after the rise on the eve. The yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the same German maturity is just under 180 basis points. The yield on the 10-year benchmark BTP dropped slightly to 4.21% from 4.23% on the previous day’s benchmark.
Tokyo closes down, worries about the next Fed moves
The Tokyo Stock Exchange retreats towards the end of trading and ends the session with a minus sign, after the mixed closure of the US stock market, with investors expressing caution about the higher-than-expected increase in US inflation. The benchmark index Nikkei dropped 0.37% to 27,501.86, and a loss of 100 points. On the currency front, the yen is weaker against the dollar, at its lowest in 6 weeks, at 133.20, and against the euro at a value of 142.60.
Other Asian stock markets also fell, fueling fears that the Federal Reserve may deem further interest rate hikes necessary after the latest results on US inflation trends. Shanghai, Hong Kong and Sydney with a minus sign.
In particular, the Japanese Stock Exchange reacts to the presentation of the new President of the Bank of Japan, Kazuo Ueda, who will succeed Haruhiko Kuroda at the end of April. Ueda was not among the possible candidates, who refused and it is up to him to