Financial Markets Daily Report13 December 2021
In the last session of the week, investors weighed concerns on rising COVID cases with another pickup in CPI inflation in the US (headline at 6.8%, highest since 1982, and core at 4.9%). Despite these high figures, the release was broadly in line with the consensus and it did not change investors' expectations for the Fed's first interest rate hike.
- In the last session of the week, investors weighed concerns on rising COVID cases with another pickup in CPI inflation in the US (headline at 6.8%, highest since 1982, and core at 4.9%). Despite these high figures, the release was broadly in line with the consensus and it did not change investors' expectations for the Fed's first interest rate hike.
- In this context, yields on sovereign bonds edged down in the US and in the euro area periphery, while ticking up on the German bonds. In stock markets, euro area equities declined slightly while US indices picked up (the S&P 500 registered a new record high).
- In FX markets, the USD weakened against most AE currencies and the euro fluctuated above $1.13.
- This week the focus will be on the Federal Reserve meeting (Tue.-Wed.), the ECB Governing Council meeting (Thu.) and on the preliminary December Markit PMIs for the main advanced economies (Thu.).