Financial Markets Daily Report14 octubre 2021
During a volatile session, financial markets ended the day with mixed results, after the U.S. CPI inflation report surprised to the upside (5.4% y/y in September after 5.3% in August). The data suggested that upward pressures on prices are broadening out, putting into question the view that the rise in inflation could be transitory.
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- During a volatile session, financial markets ended the day with mixed results, after the U.S. CPI inflation report surprised to the upside (5.4% y/y in September after 5.3% in August). The data suggested that upward pressures on prices are broadening out, putting into question the view that the rise in inflation could be transitory.
- The minutes of the Fed's 21-22 September meeting confirmed a broad agreement to start tapering asset purchases from mid-November or mid-December, a view echoed in recent speeches, including by the Fed VP Richard Clarida.
- In this context, stocks were mixed; the upside surprise in inflation in September was offset by a positive start of the Q3 earning season. Sovereign yields remained near the recent high levels while the EUR/USD fluctuated below 1.16.
- There are no major releases in the economic calendar today, following the publication this morning of inflation data in China (PPI up by 11% y/y and CPI up by 1% y/y in September).