Financial Markets Daily Report14 October 2022
Another day of rollercoaster swings across financial markets, following the negative surprise in the inflation report in the US and the upside revisions in investors’ expectations of the pace of monetary policy tightening.
- Another day of rollercoaster swings across financial markets, following the negative surprise in the inflation report in the US and the upside revisions in investors’ expectations of the pace of monetary policy tightening.
- In particular, headline CPI rose by 0.4% m/m in September, well above the previous month (0.1%) and consensus expectations (0.2%). The year-on-year rate eased modestly (-0.1 pp to 8.2%) while the core inflation measure rose to 6.6%, the highest since 1982. In China, data this morning showed CPI inflation was broadly unchanged at 2.8% y/y.
- In equity markets, stocks dropped markedly after the CPI data release to then rebound due to the emergence of dip buyers. Bond yields rose in the US while edging down across the eurozone and the UK, in the latter driven by news reporting the government is considering reversing more fiscal measures included in the mini-Budget.
- Today, the focus turns to the Q3 earnings season with the release of corporate results from some US big banks.