Financial Markets Daily Report 10 November 2023
In yesterday's session, expectations on monetary policy continued to center the stage in financial markets. In particular, Jerome Powell expressed, in similar words than at the last FOMC meeting, that official interest rates can be hiked again if needed and warned that a few months of good economic data should not mislead Fed members.
- In yesterday's session, expectations on monetary policy continued to center the stage in financial markets. In particular, Jerome Powell expressed, in similar words than at the last FOMC meeting, that official interest rates can be hiked again if needed and warned that a few months of good economic data should not mislead Fed members.
- In this context, yields on sovereign bonds rose in the euro area and, more notably, in the US (the 10-year treasury closed above 4.6%). In stock markets, European equities managed to register solid gains while in the US the S&P500 and the Nasdaq indices declined.
- In FX markets, the US dollar strengthened against most of advanced and emerging economies' currencies and the euro fluctuated, again, below $1.07.
- Today the focus will be on November preliminary University of Michigan sentiment indicators for the US.