Financial Markets Daily Report20 September 2023
Today’s FOMC meeting remained the focus of investor attention in yesterday’s session, with markets currently pricing in the Fed to keep rates unchanged. On the data front, US new home construction fell to its lowest level since 2020 as higher mortgage rates in August appear to have cooled demand.
- Today’s FOMC meeting remained the focus of investor attention in yesterday’s session, with markets currently pricing in the Fed to keep rates unchanged. On the data front, US new home construction fell to its lowest level since 2020 as higher mortgage rates in August appear to have cooled demand.
- Against this backdrop, however, ‘high rates for longer’ sentiment seemed to have remained in place amongst investors, pushing US Treasury yields higher and leading to an appreciation of the USD against its major peers. European sovereign bond yields also edged up, while major equity indices around the world were mixed.
- In the commodities market, oil prices edged higher, adding to concerns about inflation as recent price developments fed into gasoline prices and caused yesterday’s Canadian inflation data for August to surprise to the upside. In natural gas, the European benchmark TTF rose on news that supply from a Norwegian field will be shut down on Wednesday.