Financial Markets Daily Report 17 December 2021
During a volatile session, investors continued to trade with a risk-on mood, digesting the recent announcements by the world’s major central banks, which are showing a more vigilant approach to the risk of inflation.
- During a volatile session, investors continued to trade with a risk-on mood, digesting the recent announcements by the world’s major central banks, which are showing a more vigilant approach to the risk of inflation.
- The ECB announced a gradual tapering of asset purchases, ending the PEPP by Q122 while projecting inflation to stabilize close to the 2% target. The Bank of England and the Norges Banks hiked their policy rates on Thursday.
- Stock markets rose in Europe and across emerging markets but fell in the US, as investors sold off tech shares in favor of more economically sensitive sectors. Yields on sovereign bonds picked up modestly in Europe, more notably in the periphery, while the EUR strengthened against the USD.
- Today the focus will be on the IFO business climate for December, following the weaker-than-expected composite PMI flash prints in both the eurozone (53.4 after 55.4) and the US (56.9 after 57.2).