Financial Markets Daily Report
22 November 2022

Precaution continued to set the tone during the first session of the week, with investor sentiment negatively affected by the ongoing deterioration of COVID infections across China and the likely imposition of more restrictions.

FMDR
  • Precaution continued to set the tone during the first session of the week, with investor sentiment negatively affected by the ongoing deterioration of COVID infections across China and the likely imposition of more restrictions.
  • In commodity markets, oil prices fluctuated to close modestly down on the day, impacted by pessimism about China and news reporting the OPEC+ may be considering an output increase in December. The rumors, however, were denied by Saudi Arabia. The USD also strengthened against its peers, closing near 1.02 against the EUR. 
  • Elsewhere, equity prices fell across Asia and in the US, while ending with mixed results in Europe. 
  • Sovereign bond yields also edged down across the eurozone, following data showing PPI inflation eased in Germany (34.5% y/y in October after 45.8% in September) and comments from various ECB officials (Philip Lane, Robert Holzmann and Mario Centeno) about the likely pace of policy rate hikes in December (50 bp or 75 bp).
     
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