Financial Markets Daily Report14 December 2021
At the start of a key week for the central banks, investors traded cautiously as they expect a hawkish shift in tone in monetary policy, in particular from the US Federal Reserve.
- At the start of a key week for the central banks, investors traded cautiously as they expect a hawkish shift in tone in monetary policy, in particular from the US Federal Reserve.
- In this context, stock market volatility rose and the main equity indices across advanced and emerging economies declined. In fixed income markets, yields on 10-year sovereign bonds edged down in both sides of the Atlantic while euro area peripheral spreads narrowed modestly.
- In FX markets, the US dollar strengthened against advanced economies' currencies (the euro fluctuated below $1.13).
- In commodity markets, the price of the barrel of Brent edged down due to concerns over the omicron variant and despite an upward revision of OPEC's oil demand forecast for Q1 2022 from the previous month. European gas prices rose and closed near the all-time high registered in early October ($39.5).