Financial Markets Daily Report07 December 2022
Risk aversion continued to set the tone during a volatile session on Tuesday, as a better-than-expected sentiment data in the US revived concerns among investors about the pace of monetary policy tightening by the Fed.
- Risk aversion continued to set the tone during a volatile session on Tuesday, as a better-than-expected sentiment data in the US revived concerns among investors about the pace of monetary policy tightening by the Fed.
- In particular, the ISM services index improved from 54.4 to 56.5 in November, coming at odds with other data suggesting a slowdown in the economy, such as the PMI surveys.
- In Europe, manufacturing orders in Germany surprised on the upside after rising by 0.8% m/m in October while industrial production figures released this morning showed activity fell by 0.1% m/m, less than expected. In China, exports declined by 8.7% m/m in November, the lowest reading since the beginning of 2020.
- In this context, stocks and sovereign bond yields fell across the board while the USD appreciated modestly. Oil prices dropped below 80$/barrel (Brent) amid concerns about a weaker demand.