Financial Markets Daily Report09 September 2021
In yesterday’s session, investors continued to trade with a risk aversion mood, extending recent losses across the main equity markets. In its Beige Book, the Fed noted that economic growth is downshifting due to the spread of the Delta variant, while several Asian countries are extending restrictions to control the outbreak.
- In yesterday’s session, investors continued to trade with a risk-aversion mood, extending recent losses across the main equity markets. In its Beige Book, the Fed noted that economic growth is downshifting due to the spread of the Delta variant, while several Asian countries are extending restrictions to control the outbreak.
- In this context, stocks fell across the board, long-dated US Treasury yields dropped while the USD appreciated against most currencies.
- In commodity prices, oil prices went up by 1%, as the EIA revised down its forecast for US production this year (expected to fall by 200k barrels bdp versus a 160k decline previously projected), due to the impact of Hurricane Ida.
- The key event today is the monetary policy meeting by the ECB. We expect the central bank to scale back the pace of its monthly purchases, on the back of a likely upward revision to the growth and inflation outlook.