Financial Markets Daily Report04 November 2021
Investors traded with a risk-on mood yesterday, after the confirmation that the Fed will begin this month to taper its net asset purchases, but that it will keep its policy interest rates unchanged for the foreseeable future, at least until the economy reaches full employment.
- Investors traded with a risk-on mood yesterday, after the confirmation that the Fed will begin this month to taper its net asset purchases, but that it will keep its policy interest rates unchanged for the foreseeable future, at least until the economy reaches full employment.
- In the bond market, treasury yields rose only modestly while the USD depreciated against its peers. Equity prices also gained, reaching new record highs in the U.S. Investors’ sentiment was also fuelled by positive sentiment data in the U.S. (the ISM for the service sector rose to 66.7 in October from 61.9).
- In commodity markets, oil prices fell notably after U.S. crude stocks rose more than expected last week and ahead of a key policy meeting by the OPEC+ group later today.
- Monetary policy will be the key focus today, with policy meetings by central banks in the UK, Norway and Czechia.