Financial Markets Daily Report01 September 2021
In the last session of August, investors weighed the slowdown of some economic sentiment indicators (e.g.: U.S. Conference Board's consumer confidence at 113.8 from 125.1 in July and China's Composite PMI down to 48.9 in August from 52.4) against an upside surprise in the euro area inflation.
- In the last session of August, investors weighed the slowdown of some economic sentiment indicators (e.g.: U.S. Conference Board's consumer confidence at 113.8 from 125.1 in July and China's Composite PMI down to 48.9 in August from 52.4) against an upside surprise in the euro area inflation.
- In August, EA prices increased by 3.0% yoy, a rate not seen since late 2011, driven mainly by the increase in industrial goods (2.7% vs 0.7% in July). Although the ECB medium run inflation outlook might remain unchanged, Austria ECB Robert Holzmann suggested that tapering talks could start as soon as in the next Governing Council meeting.
- In this context, advanced economies' stock indices edged slightly down while sovereign yields rose, particularly so in the euro area. The euro strengthened modestly and fluctuated above $1.18.
- Today the focus will be on August Manufacturing PMIs for several economies.