Financial Markets Daily Report
01 December 2022

A speech by the president of the Federal Reserve, reinforcing the expectation that the central bank will hike rates by 50bp in December, centered the stage in yesterdays session. In the euro area, headline inflation decreased in November from 10.6% to 10.0% y/y while the core measure remained unchanged at 5.0%.

FMDR
  • A speech by the president of the Federal Reserve, reinforcing the expectation that the central bank will hike rates by 50bp in December, centered the stage in yesterdays session. In the euro area, headline inflation decreased in November from 10.6% to 10.0% y/y while the core measure remained unchanged at 5.0%.
  • Despite warning that the terminal interest rate might be higher than previously anticipated and that the fight against inflation is not over, Jerome Powell said that a slowdown in the pace of monetary policy tightening could come as soon as December. US data released yesterday also pointed to a cool down in the labor market.
  • In this context, sovereign yields declined sharply in the US while edging modestly up in the euro area. Stock indices rose across the board, particularly so in the US tech-heavy Nasdaq. In energy markets, the price of the barrel of Brent rose above $85 and European natural gas prices continued rising.
Etiquetas