Financial Markets Daily Report09 November 2022
In yesterday session, investors traded cautiously amid ECB officials’ comments pointing towards further normalization in the assets' holdings and as they waited for the outcome of the US midterms. Early this morning, the most probable outcome is that Republicans have won the House while Democrats will control the Senate by a small margin.
- In yesterday session, investors traded cautiously amid ECB officials’ comments pointing towards further normalization in the assets' holdings and as they waited for the outcome of the US midterms. Early this morning, the most probable outcome is that Republicans have won the House while Democrats will control the Senate by a small margin.
- In the euro area, ECB vice president Luis de Guindos and Bundesbank president Joachim Nagel advocated for reducing the ECB balance sheet, signaling that the process will start "for sure" in 2023. On interest rates, both Governing Council members said that demand need to be curbed in order to achieve the inflation target over the medium term.
- In this context, stock indices rose modestly across the board while yields on sovereign bonds edged lower in both sides of the Atlantic. The increase in the 2-year German bond yield was due to a change in the reference bond in Bloomberg. In FX markets, the US dollar weakened against most currencies and the euro fluctuated above parity.