Financial Markets Daily Report16 November 2023
Yesterday markets took a pause following Tuesday’s strong rally. Investors continue to price in the end of the interest rate hiking cycle while still digesting new economic data. US October retail sales slowed in October by less than expected (-0.1% m/m vs. -0.3%), suggesting some resiliency in consumption and reinforcing the idea of a soft-landing.
- Yesterday markets took a pause following Tuesday’s strong rally. Investors continue to price in the end of the interest rate hiking cycle while still digesting new economic data. US October retail sales slowed in October by less than expected (-0.1% m/m vs. -0.3%), suggesting some resiliency in consumption and reinforcing the idea of a soft-landing.
- In this context, stock markets closed slightly higher on both sides of the Atlantic and rallied in Asia following a strong reading of China’s industrial output and sales growth. Sovereign bond yields reversed some of the losses from the day before, with small gains in the euro area and somewhat larger in the US.
- Elsewhere, the US dollar was mostly unchanged leaving the euro around the $1.08 mark, and in commodity markets oil prices edged down amid ongoing concerns of a slowdown in global demand. Today, markets will be looking out for further hints from Christine Lagarde who is set to speak at the European Systemic Risk Board conference.