Financial Markets Daily Report11 December 2023
Investors ended the week by revising their expectations for future interest rates upwards as Friday’s US employment report for November beat expectations for job creation and a lower unemployment rate. This caused Treasury yields to rise across the board, as it should force the Fed to remain hawkish and potentially delay any interest rate cuts.
- Investors ended the week by revising their expectations for future interest rates upwards as Friday’s US employment report for November beat expectations for job creation and a lower unemployment rate. This caused Treasury yields to rise across the board, as it should force the Fed to remain hawkish and potentially delay any interest rate cuts.
- Major equity indices rallied on the news, fuelling optimism for a soft landing for the economy and pushing volatility to its lowest level of the year. In this context, the dollar strengthened against its major counterparts, while in commodities, the Brent oil benchmark rallied but was still down for the week on concerns about weak global demand.
- This week’s focus will be on the various central bank meetings: the Fed will release its FOMC rate decision on Wednesday, and both the BoE and the ECB will meet on Thursday. On the data front, the US CPI for November will be released on Tuesday and the preliminary Eurozone PMI data for December is due on Friday.