Financial Markets Daily Report01 December 2021
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 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 particular, Jerome Powell said before the Senate that the Federal Reserve could debate as soon as in the next meeting an acceleration of the net asset purchases tapering to fight rising inflation. He also noted, though, that the new coronavirus variant poses a downside risk to employment and economic activity.
- In this context, the U.S. sovereign yield curve flattened, with a marked increase of short-term yields. In the euro area, sovereign yields edged modestly down and peripheral spreads widened. In stock markets, losses were broad-based across advanced and emerging economies.
- Today the focus will be on November manufacturing PMIs for several economies and a speech by Powell in Congress.