Financial Markets Daily Report27 octubre 2022
Investors continued to trade with a risk-on mood, fueled by expectations that the Fed and the ECB could decide to reduce the pace of monetary tightening from December, which for the US were reinforced by the release of weak housing data. Investors were also taking position ahead of a crucial monetary policy decision by the ECB today.
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- Investors continued to trade with a risk-on mood, fueled by expectations that the Fed and the ECB could decide to reduce the pace of monetary tightening from December, which for the US were reinforced by the release of weak housing data. Investors were also taking position ahead of a crucial monetary policy decision by the ECB today.
- Yesterday, the Bank of Canada also surprised with a 50 bp hike in the policy rate, which was below consensus expectations looking for another 75 bp increase.
- In this context, yields on sovereign bonds continued to edge down, even in the UK, where the new government delayed the publication of the fiscal strategy planned for next Monday to November 17th.
- Equity indices rose across Europe but were mixed in the US, with tech stocks falling after disappointing results by some big tech companies. The EUR rose back above parity against the USD for the first time since mid-September.