Financial Markets Daily Report 31 October 2022
In the last session of the week, inflation and GDP releases centered the stage in European trading floors. HICP inflation for October surprised on the upside in most euro area countries as well as Q3 GDP figures for Germany (+0.2 q/q instead of the expected contraction). Today aggregated figures for the euro area will be released.
- In the last session of the week, inflation and GDP releases centered the stage in European trading floors. HICP inflation for October surprised on the upside in most euro area countries as well as Q3 GDP figures for Germany (+0.2 q/q instead of the expected contraction). Today aggregated figures for the euro area will be released.
- In this context, yields on sovereign bonds rose notably and stock indices were mixed in the euro area. In the US, meanwhile, mixed macroeconomic indicators and better-than-expected corporate results in big tech companies favored a rally in equities and an increase in Treasury yields.
- Elsewhere, the US dollar strengthened and the European gas prices (TTF reference) rose above 110EUR/MWh.
- This week the focus will be on the Fed meeting (Wed.), where we expect a 75bp interest rate hike and a signaling of more moderate rate increases from December. October final PMIs will also be released (Wednesday and Friday).