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 sentiment continued to improve amid some easing concerns about the impact of the Omicron variant and robust US labor market data. In particular, new unemployment claims were unchanged last week while the number of people of people receiving benefits declined by 8k to 1.859k.
In yesterday's session investors continued to trade with a risk-on mood but with more caution amid rising Covid-19 cases across advanced economies. In addition, some ECB members offered comments with a hawkish tone, opening the door even to a rate hike in 2022 if inflation were to increase further.
In yesterday's session investors traded with a risk-on mood after two sessions with generalized losses in risky assets across advanced and emerging economies.
In the first session of a week with low trading volumes, investors' sentiment kept the negative tone seen on Friday amid rising COVID-19 cases. In the US, Joe Biden's $1.75 trillion spending package was rejected in the Senate and contributed to the worsening economic outlook for the coming quarters.
In the last session of the week, investors continued to digest the decisions taken by the main central banks in advanced economies. Although at different speeds, and with the exception of the Bank of Japan, all central banks shifted towards a tighter monetary policy despite rising COVID-19 cases.
During a volatile session, investors continued to trade with a risk-on mood, digesting the recent announcements by the world’s major central banks, which are showing a more vigilant approach to the risk of inflation.
Financial markets recorded a risk-on session, after the US Federal Reserve delivered a more hawkish strategy against the risk of elevated inflationary pressures.
In yesterday's session, investors focused their attention to mounting inflationary pressures (US PPI rose by 0.8% mom in November, while consensus expected +0.5%) and the potential response from central banks.
At the start of a key week for the central banks, investors traded cautiously as they expect a hawkish shift in tone in monetary policy, in particular from the US Federal Reserve.
In the last session of the week, investors weighed concerns on rising COVID cases with another pickup in CPI inflation in the US (headline at 6.8%, highest since 1982, and core at 4.9%). Despite these high figures, the release was broadly in line with the consensus and it did not change investors' expectations for the Fed's first interest rate hike.
Risk-aversion dominated financial markets on Thursday, as fears about the potential impact of the omicron variant regained investors’ attention, which were also taking position for the key US November CPI inflation report, to be released today (consensus: 6.8% y/y, after 6.2% in October).
Volatility declined but remained elevated, as investors continue to digest mixed information about the potential risk of the spread of the omicron variant and hawkish signals from central banks. Labour data in the US (job openings surged in October while hiring decreased) also suggested that shortages are persisting.