Financial Markets Daily Report 06 October 2022
Investors' optimism faded away in yesterday's session as concerns about a recession mounted and central bank officials insisted on tightening monetary policy. Sovereign yields surged and equities fell in both sides of the Atlantic, while oil prices rose modestly after the OPEC+ confirmed that it plans to cut production by 2 million barrels per day.
- Investors' optimism faded away in yesterday's session as concerns about a recession mounted and central bank officials insisted on tightening monetary policy. Sovereign yields surged and equities fell in both sides of the Atlantic, while oil prices rose modestly after the OPEC+ confirmed that it plans to cut production by 2 million barrels per day.
- In the Federal Reserve, Atlanta President Raphael Bostic said that the fight against inflation is still in early days and San Francisco President Mary Daly downplayed expectations of interest rate cuts in 2023. Meanwhile the central bank of New Zealand hiked interest rates by 50bp. Today the focus will be on the ECB last meeting minutes.
- On the data front, September PMIs declined, particularly so in the euro area (Spain composite 48.4 from 50.5), while the US ADP employment report showed an increase in the number of private employed workers in September (+208k from an upward revised 185k). The service ISM in the US also surprised to the upside (56.7).