Financial Markets Daily Report10 September 2021
Financial markets ended the day with mixed results, as investors digested a decision by the ECB to scale down its asset purchases and, separately, hawkish comments by some Fed officials about the likely start of tapering this year. These fears outweighed positive labour data in the US (new jobless claims fell to 310k last week, a pandemic-era low).
- Financial markets ended the day with mixed results, as investors digested a decision by the ECB to scale down its asset purchases and, separately, hawkish comments by some Fed officials about the likely start of tapering this year. These fears outweighed positive labour data in the US (new jobless claims fell to 310k last week, a pandemic-era low).
- In line with expectations, the ECB announced a one-off reduction in the pace of monthly purchases, as it revised up the growth and inflation outlook. The central bank, however, noted its willingness to ramp up stimulus if needed. European stocks rose modestly, sovereign yields fell, and the the euro strengthened slightly against the USD.
- In commodity markets, oil prices fell notably as the Chinese authorities rolled out a plan to release state oil reserves and the U.S. weekly crude draw was smaller than expected.
- The key event today is a meeting by the central bank of Russia, with markets expecting a 50 bp hike in the policy rate.