Financial Markets Daily Report 18 noviembre 2021
In yesterday's session investors traded cautiously as, again, inflation concerns and monetary policymakers' comments centered the stage.
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- In yesterday's session investors traded cautiously as, again, inflation concerns and monetary policymakers' comments centered the stage.
- On the data front, UK inflation in October rose to 4.2% (3.1% in the previous month) and markets priced a higher probability of an interest rate hike from the BoE. In the euro area, Eurostat confirmed October HICP inflation at 4.1% and revised 0.1 pp downwards core inflation to 2.0%.
- ECB member Isabel Schnabel explained that the current outlook for the euro area is very different from stagflation. She noted, however, that the ECB must be ready to step in if inflation proves to be more persistent than expected.
- In this context, sovereign yields ticked up in the euro area and edged down in the U.S. In equity markets, stock indices in the euro area rose modestly but declined elsewhere. The barrel of Brent fluctuated around $80.