Financial Markets Daily Report05 December 2023
Markets took a pause after last week’s rally which brought the main stock indices to post their best monthly advance in years, and sovereign bond yields their largest monthly cuts in two years. Investors have now turned cautious ahead of this week’s US employment data while still pricing in the likelihood of interest rate cuts as soon as March 2024.
- Markets took a pause after last week’s rally which brought the main stock indices to post their best monthly advance in years, and sovereign bond yields their largest monthly cuts in two years. Investors have now turned cautious ahead of this week’s US employment data while still pricing in the likelihood of interest rate cuts as soon as March 2024.
- In the euro area, yields were mostly flat with a slight widening of some periphery risk premia, while in the US, treasury yields advanced following reports that new factory orders fell more than expected in October (-3.6% vs -3.0% expected). Euro area stocks were mixed and ended lower in the US pressured by rising yields.
- Elsewhere, the announced OPEC+ production cuts have not been able to pause the fall in oil prices, which are now trading around $78 per barrel of Brent crude. The US dollar advanced, leaving the euro close to $1.084, the lowest mark in three weeks. Today Moody’s cut China’s credit outlook to negative.