Financial Markets Daily Report 19 September 2022
Investors ended the week trading with a pessimistic tone amid concerns on the economic outlook and tightening monetary policy. On a positive note, the US consumers' inflation expectations survey (University of Michigan) showed the lowest rate since last September, easing concerns that the Fed could hike rates this week by 100bp.
- Investors ended the week trading with a pessimistic tone amid concerns on the economic outlook and tightening monetary policy. On a positive note, the US consumers' inflation expectations survey (University of Michigan) showed the lowest rate since last September, easing concerns that the Fed could hike rates this week by 100bp.
- In this context, stock indices declined across the board while yields on sovereign bonds were broadly unchanged in both sides of the Atlantic. The euro remained slightly above parity against the USD and the TTF Natural Gas, one of the main references in Europe, declined below 190 €/MWh.
- This week the focus will be on 9 central banks' meetings, among which the US Federal Reserve (Wed.), the Bank of England (Thu.) and the Bank of Japan (Thu.) stand out. Also, September flash PMI for the main advanced economies will be released on Friday.