Financial Markets Daily Report
16 November 2022

In yesterday’s session, financial markets' expectation of a much more tightened monetary policy stance eased, as producer price data in the US increased by less than expected in October (0.2% and 0.0% m/m the overall and core indices). Also, speeches from ECB and Fed members favored slowing down the pace of rate hikes.

FMDR
  • In yesterday’s session, financial markets' expectation of a much more tightened monetary policy stance eased, as producer price data in the US increased by less than expected in October (0.2% and 0.0% m/m the overall and core indices). Also, speeches from ECB and Fed members favored slowing down the pace of rate hikes.
  • Still on the data front, in Germany investors morale rose more than expected in November, according to the ZEW index which rose from -59.2 to -36.7 points. On the political front, Donald Trump announced that he is going to be a candidate for the Republican party in the primary race for the next US Presidential elections.
  • In this context, yields on sovereign bonds declined in the euro area and in the US favoring a rally in stock indices. In commodity markets, the price of European natural gas rose after two missiles exploded in Poland, a NATO nation, rising the possibility of a further escalation of the conflict if investigations prove the Russian origin of the explosives. 
     
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