Financial Markets Daily Report08 October 2021
Investors traded yesterday with a risk on mood as U.S. Democrats and Republicans agreed on a truce in the debt-ceiling standoff, easing concerns of a possible near-term government debt default. On the data front, industrial production in Germany fell by -4.0% mom in August while the U.S. weekly jobless claims fell to 326k last week.
- Investors traded yesterday with a risk on mood as U.S. Democrats and Republicans agreed on a truce in the debt-ceiling standoff, easing concerns of a possible near-term government debt default. On the data front, industrial production in Germany fell by -4.0% mom in August while the U.S. weekly jobless claims fell to 326k last week.
- On monetary policy, the ECB released the accounts of its September meeting, where the main highlight is that most members think that 2023 inflation forecast (1.5%) is too low. They also reflect that there were different views on the PEPP net asset purchases recalibration, which some members would have preferred to be "more substantial".
- In this context, stock indices rose across the board while yields on sovereign bonds edged down in the euro area and rose in the U.S. Gas prices continued to decline and the price of the barrel of Brent fluctuated above $82.
- Today the focus will be on the U.S. employment report for September.