Financial Markets Daily Report 27 October 2021
Investors traded with a risk-on mood on Tuesday, extending recent gains across equity markets following the release of positive economic data and solid corporate results.
- Investors traded with a risk-on mood on Tuesday, extending recent gains across equity markets following the release of positive economic data and solid corporate results.
- Consumer confidence in the U.S. unexpectedly improved in October as concerns about high inflation were offset by improving labour market prospects, which, together with the pickup in the PMIs, suggested growth was probably accelerating at the start of Q4. In addition, new home sales in the U.S. rose by 14% in September.
- In this context, stocks rose (the S&P and the Dow Industrials touched new record highs), sovereign bond yields fluctuated around recent levels while the price of a barrel of Brent edged up above $86, the highest level since 2018.
- Today, the focus will be on the monetary policy decisions by central banks in Canada (markets expect no changes on policy) and Brazil (markets expect a 150 b.p. hike in the policy rate).