Financial Markets Daily Report 04 October 2022
In the first session of the week, investors traded with optimism, after the worse-than-expected US ISM data for September let traders to think the Fed could pursue a less aggressive monetary policy stance than previously expected. Nevertheless, NY Fed President John Williams said that there is still job to do to curb inflation.
- In the first session of the week, investors traded with optimism, after the worse-than-expected US ISM data for September let traders to think the Fed could pursue a less aggressive monetary policy stance than previously expected. Nevertheless, NY Fed President John Williams said that there is still job to do to curb inflation.
- In this context, sovereign bond yields experienced a sharp decline in both sides of the Atlantic, helped also by the drop of the tax cut recently proposed by the UK government for the top earners, and euro area peripheral spreads narrowed. In stock markets, volatility measured by the VIX fell and equities rose across the globe.
- In commodity markets, the price of the barrel of Brent rose modestly after news reported the OPEC+ will decide to reduce production by 1 million barrels per day. European natural gas prices declined by 10% after Gazprom announced that it can start flowing gas through Nord Stream 2 as soon as it gets regulatory approval.