Financial Markets Daily Report15 December 2021
In yesterday's session, investors focused their attention to mounting inflationary pressures (US PPI rose by 0.8% mom in November, while consensus expected +0.5%) and the potential response from central banks.
- In yesterday's session, investors focused their attention to mounting inflationary pressures (US PPI rose by 0.8% mom in November, while consensus expected +0.5%) and the potential response from central banks.
- In this context, yields on 10-year sovereign bonds edged up while the main stock indices declined in both sides of the Atlantic. Financial shares benefited from the expected tightening of monetary policy while the technology sector led the losses. Equities in emerging economies also fell.
- Elsewhere, the US dollar strengthened against its peers and the euro fluctuated below $1.13. In commodity markets, oil prices edged down while European gas prices (Dutch TTF reference) reached a new record high above $42.
- Today the Federal Reserve will finish its two-day meeting and is expected to announce a faster tapering of its net asset purchases and a hawkish dot plot (more details here).