Financial Markets Daily Report02 October 2023
Investors traded with a slightly higher risk appetite on Friday as several key inflation data points on both sides of the Atlantic fell and despite the risk of a US government shutdown, which was eventually averted over the weekend, rose. Eurozone inflation fell to a 2-year low, with core CPI showing positive momentum and US core PCE also moderating.
- Investors traded with a slightly higher risk appetite on Friday as several key inflation data points on both sides of the Atlantic fell and despite the risk of a US government shutdown, which was eventually averted over the weekend, rose. Eurozone inflation fell to a 2-year low, with core CPI showing positive momentum and US core PCE also moderating.
- In this context, sovereign bond yields were rather flat in the US and fell sharply in Europe, although they still posted weekly gains, which were particularly strong for Italian benchmarks. In equity markets, most major European indices posted gains, while the US S&P500 fell on the threat of a government shutdown.
- In the currency markets, the euro appreciated slightly against its major peers. On the data front, this week's focus will be on September US ISM survey (Mon.), August's JOLTS (Tue.) and September Non-Farm Payrolls (Fri.). China, for its part, is preparing for a week-long holiday, which should test private consumption.