Financial Markets Daily Report 09 November 2021
Investors started the week with a mixed tone as they digested the positive employment data in the U.S., strong corporate earnings and comments from central bankers in both sides of the Atlantic. For the Fed, Richard Clarida said that if the economic outlook advances as expected, conditions for rising interest rates will be met by year-end 2022.
- Investors started the week with a mixed tone as they digested the positive employment data in the U.S., strong corporate earnings and comments from central bankers in both sides of the Atlantic. For the Fed, Richard Clarida said that if the economic outlook advances as expected, conditions for rising interest rates will be met by year-end 2022.
- Meanwhile, in the euro area, Phillip Lane said that raising interest rates in the current environment could be counterproductive for economic growth. In addition, Robert Holzmann, one of the most hawkish members of the ECB Governing Council, said that the ECB should not hike rates in a supply shock.
- In this context, stock indices were mixed across advanced economies and increased in EM. In fixed-income markets, yields on sovereign bonds edged up in the euro area and in the U.S. Elsewhere, energy commodity prices rose, amid expectation of increased demand, and the euro strengthened modestly and fluctuated close to $1.16.