Financial Markets Daily Report01 December 2023
Investors took a breather from the recent buying spree in government bonds during Thursday’s session, pushing yields higher on both sides of the Atlantic. Despite data releases yesterday showing inflation cooling more than expected in the Eurozone and the US, investors were cautious ahead of comments from some central bankers.
- Investors took a breather from the recent buying spree in government bonds during Thursday’s session, pushing yields higher on both sides of the Atlantic. Despite data releases yesterday showing inflation cooling more than expected in the Eurozone and the US, investors were cautious ahead of comments from some central bankers.
- Fed officials speaking yesterday pushed back slightly against the idea of interest rate cuts ahead of Powell’s speech today. Fed’s Daly said she is not contemplating rate cuts at all, while Fed Williams said he expected policy to remain restrictive for quite some time. ECB’s Panetta, however, warned of the risk of damage to the economy from high interest rates.
- Against this backdrop, the dollar appreciated against its major peers, and major stock indices posted modest gains. In commodities, the Brent oil benchmark fell slightly after the OPEC+ meeting promised further supply cuts but with a voluntary nature, and some countries seem to be already rejecting them.