Financial Markets Daily Report 14 November 2022
In the last session of the week, investors' sentiment kept the upbeat tone seen on Thursday following the decrease in the October US CPI inflation figures. Money markets continued to price a lower monetary policy tightening from the ECB and the Fed than the one implied before the CPI release.
- In the last session of the week, investors' sentiment kept the upbeat tone seen on Thursday following the decrease in the October US CPI inflation figures. Money markets continued to price a lower monetary policy tightening from the ECB and the Fed than the one implied before the CPI release.
- The European Commission presented its autumn forecasts, where euro area inflation is revised upwards (to 8.5% and 6.1% for 2022 and 2023, respectively) and GDP growth down, including contractions in Q4 2022 and Q1 2023. During the weekend, we knew that the Democrats finally kept control of the US Senate by winning in Nevada and Arizona.
- In this context, stock indices continued to advance, particularly so in Asia and in the US (despite the decline in sentiment indicators), and yields in euro area sovereign bonds rose, partially undoing the movement seen in the previous session. This week the focus will be on the US retail sales and industrial production of November (Wed.).