Financial Markets Daily Report 27 September 2021
Markets ended the week in a mixed mood as investors pondered over the Fed's plans for stimuli withdrawal, risks from China's Evergrande and the announcement that Chinese authorities will ban all transactions and mining related to cryptocurrencies. Global stocks declined or closed flat while the USD rose against most AE and EM currencies.
- Markets ended the week in a mixed mood as investors pondered over the Fed's plans for stimuli withdrawal, risks from China's Evergrande and the announcement that Chinese authorities will ban all transactions and mining related to cryptocurrencies. Global stocks declined or closed flat while the USD rose against most AE and EM currencies.
- In fixed-income markets, sovereign yields edged higher as two Fed officials (Cleveland's Mester and Kansas' George) said that the criteria for tapering asset purchases has been met –reinforcing the message from Wednesday's meeting.
- On Sunday's general election in Germany, the SPD gained 25.7% of the vote, followed by the CDU/CSU (24.1%), the Greens (14.8%) and the liberal FDP (11.5%). Several government coalitions are possible.
- This week the focus will be on the release of September economic sentiment indicators in several major economies (eg., ISMs and PMIs) as well as on euro area inflation figures.