Financial Markets Daily Report 16 October 2023
Friday´s session was clouded by the risk that geopolitical tensions in the Middle East could escalate further causing a sustained rise in oil prices. On the economic side, US University of Michigan Consumer Sentiment fell from 68 to 63 from last month and China exports fell, although by less than expected by the consensus.
- Friday´s session was clouded by the risk that geopolitical tensions in the Middle East could escalate further causing a sustained rise in oil prices. On the economic side, US University of Michigan Consumer Sentiment fell from 68 to 63 from last month and China exports fell, although by less than expected by the consensus.
- In this context, investors traded with a risk-off mood. Sovereign bond yields fell sharply on both sides of the Atlantic, most notably in Germany and the US. The 10Y treasury reached 4.6%, unwinding the previous session's gain, and euro area periphery risk premia widened as the German 10Y bund fell 5 basis points.
- Elsewhere, the main stock indices posted declines globally, the US dollar strengthened and the price of the barrel of Brent rose above $90.
- This week, the focus will be on the release of US industrial production (Tue.), and PPI for some eurozone countries.