Financial Markets Daily Report20 November 2023
In the last session of the week, investors continued to digest the patient approach for the monetary policy ahead expressed by ECB and US Federal Reserve officials. For example, San Francisco Fed President Mary C. Daly said that the Fed could take its time to do things right, signaling that no further rate hikes are in sight for the moment.
- In the last session of the week, investors continued to digest the patient approach for the monetary policy ahead expressed by ECB and US Federal Reserve officials. For example, San Francisco Fed President Mary C. Daly said that the Fed could take its time to do things right, signaling that no further rate hikes are in sight for the moment.
- In the ECB, comments from some of its members (Austrian Holzmann and Belgian Wunsch) tried to push investor’s expectations for the first interest rate cut, currently priced in for June. In this context, yields on 10-year sovereign bonds were flat in the US and Germany, fluctuating at levels 50 and 40bp below the maximums seen in mid-October.
- Elsewhere, stock indices rose modestly across the board while the euro strengthened and fluctuated above $1.09.
- On Sunday, Javier Milei won Argentina’s presidency with 56% of the votes. This week the focus will be on the central banks meetings’ accounts (Fed on Wed., ECB on Thu.) and on November flash PMIs for the main economies (Thu).