Financial Markets Daily Report 02 November 2021
In the first session of the week, investors traded with a risk-on mood ahead of the Federal Reserve meeting that starts today and concludes on Wednesday. We expect Jerome Powell to announce the beginning of the tapering of the net asset purchase programme, which could start in November and conclude in mid-2022.
- In the first session of the week, investors traded with a risk-on mood ahead of the Federal Reserve meeting that starts today and concludes on Wednesday. We expect Jerome Powell to announce the beginning of the tapering of the net asset purchase programme, which could start in November and conclude in mid-2022.
- On the data front, U.S. manufacturing ISM for October edged slightly down, but remains by and large in the expansionary territory (Oct. 60.8, Sep. 61.1). Regarding inflationary pressures, the subcomponent of prices paid by manufacturers rose from 81.2 to 85.7 points, exacerbating fears that the rebound in prices could be more persistent.
- In this context, stock indices advanced across the board, with Japanese equities leading and spreading the gains after PM Fumio Kishida and its Liberal Democratic Party managed to retain a majority in Parliament at the elections.
- In energy markets, the price of the barrel of Brent edged modestly up ahead of the OPEC+ meeting this Thursday.