Financial Markets Daily Report

Financial Markets Daily Report
07 desembre 2022

Risk aversion continued to set the tone during a volatile session on Tuesday, as a better-than-expected sentiment data in the US revived concerns among investors about the pace of monetary policy tightening by the Fed.

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  • Risk aversion continued to set the tone during a volatile session on Tuesday, as a better-than-expected sentiment data in the US revived concerns among investors about the pace of monetary policy tightening by the Fed.
  • In particular, the ISM services index improved from 54.4 to 56.5 in November, coming at odds with other data suggesting a slowdown in the economy, such as the PMI surveys.
  • In Europe, manufacturing orders in Germany surprised on the upside after rising by 0.8% m/m in October while industrial production figures released this morning showed activity fell by 0.1% m/m, less than expected. In China, exports declined by 8.7% m/m in November, the lowest reading since the beginning of 2020.
  • In this context, stocks and sovereign bond yields fell across the board while the USD appreciated modestly. Oil prices dropped below 80$/barrel (Brent) amid concerns about a weaker demand.
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