Financial Markets Daily Report03 November 2021
In yesterday's session, investors traded cautiously as they positioned for today's conclusion of the Federal Reserve meeting (where we expect Jerome Powell to announce the beginning of a reduction in the pace of net asset purchases) and tomorrow's Bank of England monetary policy meeting.
- In yesterday's session, investors traded cautiously as they positioned for today's conclusion of the Federal Reserve meeting (where we expect Jerome Powell to announce the beginning of a reduction in the pace of net asset purchases) and tomorrow's Bank of England monetary policy meeting.
- On the data front, October manufacturing PMIs in Europe came in broadly as suggested by the flash releases and remained clearly in the expansionary territory (euro area 58.3; Germany 57.8; France 53.6). In Spain, the index declined from 58.1 points in September to 57.4 while in Italy it rose from 59.7 to 61.1.
- In this context, stock indices were mixed in advanced economies, with U.S. equities still benefiting from the ongoing better-than-expected Q3 earning's season. In fixed income markets, yields on sovereign bonds declined significantly in the euro area, partially undoing the rally registered last week.