Financial Markets Daily Report 10 November 2022
Investors continued to trade with a cautious mood on Wednesday, as results from the US midterm elections suggested the Republicans may gain control of the House but the Democrats could hold on the Senate. Investors were also taking position ahead of a crucial CPI inflation report in the US today.
- Investors continued to trade with a cautious mood on Wednesday, as results from the US midterm elections suggested the Republicans may gain control of the House but the Democrats could hold on the Senate. Investors were also taking position ahead of a crucial CPI inflation report in the US today.
- Richmond Fed President Barkin reiterated calls for further rate hikes in upcoming meetings, although acknowledging the ongoing tightening could lead to a downturn in the economy. Barkin also noted inflationary pressures are easing.
- On the data front, the producer price index in China fell by 1.3% y/y in October, reversing from a 0.9% gain a month earlier. CPI inflation also eased to 2.1% y/y from 2.8% in September.
- In this context, stocks were mixed across Europe but declined markedly in the US. Sovereign bond yields edged down while oil prices fell notably after data showed US crude inventories rose more than expected.