Financial Markets Daily Report 02 noviembre 2023
In yesterday's session, the FOMC decided to leave interest rates unchanged at the 5.25%-5.50% target range. Despite describing the economic outlook with similar words than in September and not ruling out an additional rate hike, markets lowered the probabilities of a further tightening in the monetary policy stance.
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- In yesterday's session, the FOMC decided to leave interest rates unchanged at the 5.25%-5.50% target range. Despite describing the economic outlook with similar words than in September and not ruling out an additional rate hike, markets lowered the probabilities of a further tightening in the monetary policy stance.
- In this context, sovereign bond yields declined sharply in the US (-20bp in the 10-year bond) and more modestly in the euro area, where peripheral spreads widened moderately. Stock indices benefited from the expectation of a lower-than-expected interest rate environment going forward and rose notably across the globe.
- Elsewhere, the US dollar weakened against most advanced economies' currencies with the exception of the euro, which fluctuated below $1.06.
- Today the focus will be on the October Manufacturing PMIs for the main advanced economies.