Financial Markets Daily Report13 November 2023
During Friday’s session investors’ sentiment was mixed as markets continued to digest Powell’s speech and hawkish remarks from Lagarde. The University of Michigan U.S. Consumer Sentiment Index dropped again in November for the fourth straight month to 60.4 (63.8 in October), and households’ expectations for long term inflation rose to 3.2%.
- During Friday’s session investors’ sentiment was mixed as markets continued to digest Powell’s speech and hawkish remarks from Lagarde. The University of Michigan U.S. Consumer Sentiment Index dropped again in November for the fourth straight month to 60.4 (63.8 in October), and households’ expectations for long term inflation rose to 3.2%.
- In this context, sovereign bond yields rose in the euro area and in the US, where the 2Y treasury yield remains above 5%. Stock markets were mixed, falling across the globe except in the US, pulled upwards by the major technology companies.
- Elsewhere, the US dollar was mostly unchanged and Brent prices edged higher to $81 per barrel. This week, the main focus will be on October CPI data in the US, Spain and France, euro area Q3 employment, and speeches from ECB officials, mainly Christine Lagarde and Phillip Lane.