Financial Markets Daily Report 16 November 2021
Comments by central bankers centered the stage at the start of the week in a session with no relevant economic data releases. In the euro area Christine Lagarde reiterated that a rate hike in 2022 is "very unlikely" even if the current inflation spike might be higher and longer than initially expected.
- Comments by central bankers centered the stage at the start of the week in a session with no relevant economic data releases. In the euro area Christine Lagarde reiterated that a rate hike in 2022 is "very unlikely" even if the current inflation spike might be higher and longer than initially expected.
- The Bank of England Governor, Andrew Bailey, said that his decision to vote for keeping rates on hold in November was a close call, but reiterated to investors that the central bank would act to counter above-target inflation.
- In this context, yields on sovereign bonds edged up in both sides of the Atlantic and euro area peripheral spreads ticked up. In equity markets, gains were broad-based and moderate across advanced economies while Asian indices declined. The euro weakened and fluctuated below $1.14, a level not seen since July 2020.
- Today the focus will be on October retail sales and industrial production data for the U.S..