Financial Markets Daily Report04 October 2021
Investors ended the week with mixed results, as fears intensified that inflationary pressures are building up across the globe. The headline HICP in the Eurozone rose to levels not seen since 2008 (3.4% y/y in September) while in the U.S. the PCE deflator remained elevated (4.3% y/y august).
- Investors ended the week with mixed results, as fears intensified that inflationary pressures are building up across the globe. The headline HICP in the Eurozone rose to levels not seen since 2008 (3.4% y/y in September) while in the U.S. the PCE deflator remained elevated (4.3% y/y august).
- In addition, September manufacturing PMIs were released and, despite slowing down in most euro area economies, they remain substantially above the 50-level threshold. In the U.S. the ISM manufacturing rose 1.2 points towards 61.1, with the prices paid component at above 80 points, contributing to investors' inflationary concerns.
- In this context, stock indices were mixed and yields on sovereign bonds edged down on both sides of the Atlantic.
- In the economic calendar, this week the key data releases include industrial production for August in Germany (Thursday) and the employment report for September in the U.S. (Friday).