Financial Markets Daily Report 20 October 2022
In yesterday's session, investors traded with a cautious mood, despite the good news in the earnings season, as they continued to assess a complicated macroeconomic scenario.
- In yesterday's session, investors traded with a cautious mood, despite the good news in the earnings season, as they continued to assess a complicated macroeconomic scenario.
- The Fed's beige book revealed that, despite the monetary policy tightening and the uncertainty on the scenario, the US economy keeps expanding at a moderate pace. However, conditions are different across regions and districts. In particular, the real estate sector is facing difficulties and housing starts dropped by 8.1% m/m in September.
- On monetary policy, Minneapolis Federal Reserve president Neel Kashkari said that we might have not yet seen the peak on inflation and labor demand remains strong, suggesting that further tightening seems reasonable.
- In this context, yields on sovereign bonds rose, stock indices declined while the USD strengthened against most currencies. Natural gas prices also ticked down, ahead of the EU summit that starts today.