Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Comments by central bankers centered the stage at the start of the week in a session with no relevant economic data releases. In the euro area Christine Lagarde reiterated that a rate hike in 2022 is "very unlikely" even if the current inflation spike might be higher and longer than initially expected.
Investors closed the week with a cautious mood amid mixed economic data releases in the U.S. and dovish comments from ECB officials. In particular, the Finnish and Lithuanian central banks' chiefs insisted that the current inflation is transitory, although it may last longer than initially expected.
Equity markets recorded a modest pickup on Thursday, recovering from the selloff in the previous session, after the stronger-than-expected U.S. CPI October data reinforced fears about intensifying inflationary pressures.
Financial markets ended the day with mixed results, as stronger-than-expected inflation data in both the U.S. and China reinforced investors’ fears about the persistency of the pickup in prices.
In yesterday’s session, central bankers’ comments centered the stage again, as investors positioned for today’s release of the key CPI October data in the U.S.
Investors started the week with a mixed tone as they digested the positive employment data in the U.S., strong corporate earnings and comments from central bankers in both sides of the Atlantic. For the Fed, Richard Clarida said that if the economic outlook advances as expected, conditions for rising interest rates will be met by year-end 2022.
Financial markets ended the week on a positive note, supported by stronger-than-expected employment data in the US (non-farm payrolls rose by 531k in October while the jobless rate edged down by 0.2 p.p. to 4.6%) and the approval by lawmakers in Washington of the $1.2tn infrastructure spending bill.
In yesterday's session, investors traded with an optimistic mood as they digested the Fed's decision to initiate the tapering of net asset purchases this month and the dovish confirmation that it will keep its policy interest rates unchanged for the foreseeable future.
Investors traded with a risk-on mood yesterday, after the confirmation that the Fed will begin this month to taper its net asset purchases, but that it will keep its policy interest rates unchanged for the foreseeable future, at least until the economy reaches full employment.
In yesterday's session, investors traded cautiously as they positioned for today's conclusion of the Federal Reserve meeting (where we expect Jerome Powell to announce the beginning of a reduction in the pace of net asset purchases) and tomorrow's Bank of England monetary policy meeting.
In the first session of the week, investors traded with a risk-on mood ahead of the Federal Reserve meeting that starts today and concludes on Wednesday. We expect Jerome Powell to announce the beginning of the tapering of the net asset purchase programme, which could start in November and conclude in mid-2022.
In an eventful session, investors traded with a risk-on mood and stock indices rose in the U.S. and in most euro area trading floors. In fixed-income markets, sovereign yields edged up in both sides of the Atlantic, specially so in Italy, where Mario Draghi presented the 2022 fiscal budget with some tax cuts and an increase in the retirement age.