Financial Markets Daily Report 25 septiembre 2023
Financial markets ended the week giving mixed signals from both sides of the Atlantic. In Europe, flash PMI data for September showed a slight improvement in business activity, albeit still signalling economic contraction amid a weak German manufacturing sector, pushing up government bond yields and dragging most equity indices lower.
- Financial markets ended the week giving mixed signals from both sides of the Atlantic. In Europe, flash PMI data for September showed a slight improvement in business activity, albeit still signalling economic contraction amid a weak German manufacturing sector, pushing up government bond yields and dragging most equity indices lower.
- In the US, despite several Fed officials stated on Friday that further rate hikes were still likely, Treasury yields fell along with the major stock indices, which ended the day lower after volatile trading. The USD strengthened against its major peers, especially the JPY, which weakened after the BoJ's slightly dovish surprise.
- In the commodities market, crude oil prices were flat, while the price of the European natural gas benchmark TTF rose after Russia announced a surprise ban on petrol and diesel exports, sparking concerns over its gas supplies. This week's focus will be on today's German IFO, and US core PCE for August and eurozone flash CPI for September due on Friday.