Financial Markets Daily Report 07 November 2022
Investors closed the week trading with a risk on mood. Sentiment was supported by news reporting that the Chinese government may scrap some COVID restrictions affecting the airline sector. In addition, investors shrug off the upside surprise in the pace of job creation in the US (+261.000 in October versus 200.000 expected by the consensus).
- Investors closed the week trading with a risk on mood. Sentiment was supported by news reporting that the Chinese government may scrap some COVID restrictions affecting the airline sector. In addition, investors shrug off the upside surprise in the pace of job creation in the US (+261.000 in October versus 200.000 expected by the consensus).
- In the eurozone, ECB president Lagarde said that the ECB may need to bring policy rates to restrictive territory (i.e. above the neutral level) to rein in inflationary pressures, adding that “our job is far from being completed”.
- In this context, stocks rose across the board, led by a rebound in China. Sovereign bond yields also picked up while the USD depreciated against its peers, trading near to parity against the EUR.
- This week, the focus will turn to inflation with the October’s CPI releases in China (Wednesday) and the US (Thursday) and on the outcome of the US midterm elections (Tuesday).