Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Investors closed the week trading cautiously under a volatile setting, still digesting political developments in the UK and signs of lingering inflationary pressures. In Europe, natural gas prices fell notably, following reports that Germany is likely to support a price cap to be included in the next EU package, to be agreed in coming weeks.
In yesterday’s session, politics centered the stage in financial markets, following the resignation of UK Prime Minister Liz Truss due to the loss of confidence in her government. The Conservative Party is expected to present a new leader before the end of October and ahead of the release of the widely expected fiscal plan.
In yesterday's session, investors traded with a cautious mood, despite the good news in the earnings season, as they continued to assess a complicated macroeconomic scenario.
In yesterday's session, investors continued to trade with an upbeat tone amid better-than-expected corporate profits releases and macroeconomic data. In particular, the US industrial production in September rose by 0.4% m/m and the Zew survey expectations index for Germany and the euro area edged up modestly in October.
In the first session of the week, investors' sentiment improved as sovereign interest rates declined in both sides of the Atlantic and amid better-than-expected corporate earnings releases in the US. Equity indices rose substantially across the board.
On Friday, the survey of the University of Michigan showed an increase in inflation expectations for the US, which led to a rise in sovereign yields and sharp losses on US stock indices. Meanwhile, in Europe, equities managed to register moderate advances. The US dollar strengthened against most currencies and the euro fluctuated below $0.98.
Another day of rollercoaster swings across financial markets, following the negative surprise in the inflation report in the US and the upside revisions in investors’ expectations of the pace of monetary policy tightening.
Volatility and risk aversion continued to set the tone across markets on Wednesday, with investors taking position ahead of a crucial inflation report in the US later today and the kickoff of the Q3 corporate earnings season on Friday.
Investors continued to trade cautiously at the start of the week, with risk sentiment negatively affected by the escalation in the war in Ukraine, new outbreaks of COVID cases and the reimposition of some restrictions in China as well as investors’ gloomy outlook for corporate profits, ahead of the start of the Q3 earnings season later this week.
Risk aversion continued to set the tone during a highly volatile session at the end of the week, as investors read the US payrolls report as evidence that the Fed will continue tightening monetary policy.
Monetary policy tightening centered the stage again, with several US Federal Reserve members arguing that interest rates needed to be hiked further and that there were no clear signs of inflation having peaked yet. In the euro area, the accounts of the last ECB meeting revealed a broad-based concern of GC members about current inflation figures.
Investors' optimism faded away in yesterday's session as concerns about a recession mounted and central bank officials insisted on tightening monetary policy. Sovereign yields surged and equities fell in both sides of the Atlantic, while oil prices rose modestly after the OPEC+ confirmed that it plans to cut production by 2 million barrels per day.