Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
In yesterday's session investors traded cautiously amid concerns on the new coronavirus variant and mixed economic sentiment data releases. November manufacturing PMIs ticked up in the euro area (58.4) but decreased in Spain (57.1 vs 57.4 in October), China (49.9 vs 50.6) and the U.S. (58.3 vs 58.4).
In yesterday's session, investors traded with a risk-off mood amid rising concerns over the omicron variant, rising inflation in the euro area (headline 4.9% and core 2.6%) and hawkish comments by Fed members.
In yesterday's session, investors traded cautiously despite easing concerns on the omicron variant. On the data front, the euro area economic sentiment indicator eased in November from 118.6 points to 117.5 and inflation numbers continued to increase in the region. Germany's HICP inflation rose 1.4pp to 6.0% while in Spain it rose 0.2pp to 5.6%.
Financial markets closed the week with a sell-off session amid concerns of a new coronavirus variant identified in South Africa. The main concerns are the speed at which this variant can spread and whether it will be immune to the vaccines. Volatility rose and demand for safe assets increased.
In a session with low volumes due to the bank holiday in the U.S., investors traded with a risk-on mood, still supported by the better-than-expected economic data releases earlier on the week as well as the dovish signals in the minutes of October’s ECB meeting.
A mixed session for financial markets packed with economic data releases ahead of a holiday in the US today (Thanksgiving Day).
Investors continued trading with a risk-off mood, with sentiment gloomed by the deterioration of the COVID situation across Europe and mixed signals from economic sentiment data. Investors were also taking position ahead of the bank holiday in the US later this week.
Financial markets started the week with mixed results. Investors balanced out the risk from the COVID outbreak in Europe with the re-appointment of Jerome Powell as the next Fed president and the nomination of Lael Brainard as the next VP, signaling policy continuity at the helm of the central bank.
Markets ended the week with a risk-off sentiment, driven by hawkish commentary by some Fed officials about the potential need to readjust policy to deal with the rebound in inflation. In contrast, ECB president Christine Lagarde reiterated prices will stabilize in the euro area in line with the central bank's target.
Inflation remained the key focus of investors on Thursday, following comments by Fed and IMF officials that the rebound in prices might be more broad based and "sticky".
In yesterday's session investors traded cautiously as, again, inflation concerns and monetary policymakers' comments centered the stage.