Financial Markets Daily Report21 November 2023
The week started in a subdued mood in financial markets, with investors still assessing the implications of the patient approach of central banks on monetary policy. Yesterday, ECB member de Cos followed previous comments from Wunsch and Holzmann and said that it is premature to talk about interest rate cuts.
- The week started in a subdued mood in financial markets, with investors still assessing the implications of the patient approach of central banks on monetary policy. Yesterday, ECB member de Cos followed previous comments from Wunsch and Holzmann and said that it is premature to talk about interest rate cuts.
- In this context, yields on sovereign bonds rose in the euro area and peripheral spreads narrowed following Friday's rating decisions by Moody's. In particular, Portugal's was revised two notches up (from Baa2 to A3, with stable outlook despite the increase in political uncertainty) and Italy's was maintained at Baa3 with its outlook improved to stable.
- Elsewhere, stock indices registered moderate gains in most advanced economies and the US dollar continued to weaken against its peers (the euro fluctuated above $1.09). In commodities markets, the price of the barrel of Brent rose as investors expect OPEC+ to announce further supply cuts at its next week meeting.