Market Comment | Financial Markets Found Some Ground

Summary

Financial markets moved sideways waiting for further developments on the Middle East conflict. Moreover US-China trade negotiations turned optimistic after China’s Vice Premier Liu He agreed to sign the phase-one trade deal on January 15th.

Key points

• Key points:
• Sovereign yields leveled off awaiting for further clues about US-Iran conflict, amid positive prospect for US-China trade deal.
• Economic data helped to stabilize financial markets: Eurozone inflation rose to 1.3% YoY, while US services sector continued expanding.
• Oil prices retracted, while equity volatility remained contained but demand for gold and safe haven currencies remained high.
• Spain's left-wing coalition government (PSOE-Unidas Podemos) won parliamentary support.

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