Financial Markets Daily Report03 octubre 2022
On Friday, investors continued to weigh the hawkish monetary policy agenda of the main central banks and the upside surprises on inflation data. In the euro area, headline HICP inflation jumped from 9.1% to 10.0% and core inflation increased by 0.5pp to 4.8% yoy.
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- On Friday, investors continued to weigh the hawkish monetary policy agenda of the main central banks and the upside surprises on inflation data. In the euro area, headline HICP inflation jumped from 9.1% to 10.0% and core inflation increased by 0.5pp to 4.8% yoy.
- In the US, PCE core inflation data rose from 4.7% to 4.9% yoy while headline inflation ticked down to 6.2%. Fed VP Lael Brainard said on Friday that monetary policy will need to be restrictive for some time to have enough confidence that inflation returns to target, pushing back expectations of early interest rate cuts.
- In this context, in the euro area stock indices increased while yields on sovereign bonds edged down. In the US, by contrast, equities fell further, posting their third straight quarter of losses for the first time since 2009.
- Today, the OPEC holds a meeting. Later on this week, the focus will be on the final PMIs and the job report for the US.