Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
25 octubre 2021
Financial markets ended the week with mixed results, balancing the positive tone from the corporate results for the Q3 earning season with disappointing survey economic data in Europe.
In yesterday's session, financial markets traded with an optimistic tone amid positive corporate earnings releases in the U.S. and across Europe. Investors remain concerned, though, about inflationary pressures as the Fed's Beige Book reported significant increases in prices and wages in a decelerating economy.
In yesterday's session, investors traded with an optimistic tone amid positive corporate results in the U.S. and dovish comments by central bank officials. In particular, ECB Olli Rehn, reiterated that the current spike in inflation is mostly temporary, although some factors pushing up inflation might be more persistent than initially thought.
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.
Markets ended the week on a weak note, following the release of disappointing employment data in the U.S. (non-farm payrolls rose by 194k in September after 366k in August). The report, however, showed wage growth picking up (4.6% y/y), which reinforced fears that inflationary pressures are building up across the economy.
Investors traded yesterday with a risk on mood as U.S. Democrats and Republicans agreed on a truce in the debt-ceiling standoff, easing concerns of a possible near-term government debt default. On the data front, industrial production in Germany fell by -4.0% mom in August while the U.S. weekly jobless claims fell to 326k last week.
In yesterday's session, investors’ sentiment worsened in the euro area, amid inflationary concerns, while in the U.S. investors focused their attention on a potential breakthrough in negotiations between Democrats and Republicans to extend the debt ceiling and on the better than expected ADP employment report.
Yesterday investors traded with optimism amid better than expected economic sentiment data in advanced economies. In particular, the U.S. non-manufacturing ISM index for September increased by 0.2 points to 61.9 while the final Composite PMI in the euro area remained at elevated levels (56.2) despite falling by 2.8 points.