Financial Markets Daily Report 11 October 2022
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.
- 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.
- Central bank officials in both the US (Fed Chicago Charles Evans) and the eurozone (Governing Council member Klaas Knot) reiterated calls for further interest rate hikes at the upcoming monetary policy meetings. In the UK, the Bank of England extended emergency measures to support the bond market until early next month.
- In this context, yields on sovereign bonds edged higher in Europe, less markedly across periphery countries, which were boosted by news reporting support for a joint issuance of EU bonds. Stocks also declined, more notably in China, while the USD appreciated against its peers. Today, the IMF releases the update of its global economic outlook.