Financial Markets Daily Report 13 October 2021
Markets started the first two sessions of the week with mixed results, with fears about rising inflation and slowing growth remaining the key themes among investors, and ahead of the start of the Q3 corporate earnings season.
- Markets started the first two sessions of the week with mixed results, with fears about rising inflation and slowing growth remaining the key themes among investors, and ahead of the start of the Q3 corporate earnings season.
- In the update of its World Economic Outlook, the IMF revised down its growth forecasts but adjusted upward the inflation outlook, urging central banks to remain vigilant to the risk of a more permanent increase in prices.
- In this context, stocks fell across advanced and emerging economies, the USD appreciated modestly against its peers and commodity prices remained broadly flat. In the bond market, sovereign yields rose at the front end of the curve in the U.S., as investors continued to price a more hawkish tone by the Fed.
- On the data front, the key focus today is on the U.S. CPI inflation for the month of September and the release of the minutes of the Fed 21-22 September meeting.