Financial Markets Daily Report02 December 2022
A wave of weaker-than-expected economic data both in the US and the euro area yielded a moderation in the expected path of policy interest rates which, in turn, pushed sovereign yields downs in both sides of the Atlantic. Stock indices edged up in the euro area and in emerging markets while closing mixed in the US.
- A wave of weaker-than-expected economic data both in the US and the euro area yielded a moderation in the expected path of policy interest rates which, in turn, pushed sovereign yields downs in both sides of the Atlantic. Stock indices edged up in the euro area and in emerging markets while closing mixed in the US.
- On the data front, October retail sales declined by 2.8% in Germany and final November manufacturing PMIs were revised downwards from the flash release in the euro area. In the US, the ISM manufacturing index dropped below the 50-points threshold. On the positive side, the prices paid subcomponent fell further (43.0).
- Today the focus will be on the US employment report for November, which is likely to be key for the next Federal Reserve meeting. The change in non-farm payrolls is expected to moderate from 261k in October to 200k, according to the Bloomberg consensus. October producer prices for the euro area will also be released today.