Financial Markets Daily Report
11 October 2021

Markets ended the week on a weak note, following the release of disappointing employment data in the U.S. (non-farm payrolls rose by 194k in September after 366k in August). The report, however, showed wage growth picking up (4.6% y/y), which reinforced fears that inflationary pressures are building up across the economy.

FMDR
  • Markets ended the week on a weak note, following the release of disappointing employment data in the U.S. (non-farm payrolls rose by 194k in September after 366k in August). The report, however, showed wage growth picking up (4.6% y/y), which reinforced fears that inflationary pressures are building up across the economy.
  • In this context, sovereign bond yields rose across the board, with the U.S. 10-year treasury bond yielding above 1.6% for the first time since May. Stock prices fell in both sides of the Atlantic, erasing some of the gains of the previous sessions, after an agreement was found to extend the debt ceiling in the U.S.
  • In addition, the EUR was flat while commodity prices increased modestly, except for gas prices.
  • This week the focus will be on inflation, with the release of the September CPI data in the U.S. (Wednesday) and China (Thursday). In addition, the Fed will release the minutes of the 21-22 September meeting.
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