Financial Markets Daily Report19 October 2021
Financial markets started the week with mixed results, amid feeble economic data releases. In the U.S., industrial production fell in September by 1.3% (-0.1% in August), the largest decline since February.
- Financial markets started the week with mixed results, amid feeble economic data releases. In the U.S., industrial production fell in September by 1.3% (-0.1% in August), the largest decline since February.
- In China, Q3 GDP growth decelerated to the slowest pace since the start of the pandemic (+4.9% y/y) due to the spread of the Delta variant, supply shortages and energy disruptions. Evergrande concerns, which has already defaulted on three payments, might add to the growth underperformance in Q4.
- In this context, stock indices declined in the euro area and in most emerging economies while increased in the U.S., fuelled by positive corporate profit releases. Yields on sovereign bonds edged up in both sides of the Atlantic and euro area peripheral spreads ticked up.
- In oil markets, the price of the barrel of Brent declined modestly but still fluctuated above $84.