Financial Markets Daily Report22 November 2023
Investors continued to trade cautiously yesterday amid messages from central banks signaling the end of the interest rates hiking cycle. Nevertheless, Christine Lagarde said that more evidence is needed to be sure that inflation returns sustainably to the 2% target.
- Investors continued to trade cautiously yesterday amid messages from central banks signaling the end of the interest rates hiking cycle. Nevertheless, Christine Lagarde said that more evidence is needed to be sure that inflation returns sustainably to the 2% target.
- In the US, the last FOMC meeting minutes showed a generalized consensus among its members to proceed carefully with interest rate movements in upcoming meetings. According to the minutes, FOMC members would only move interest rates higher if there is insufficient progress in lowering inflation, as risks have become more balanced.
- In this context, yields on sovereign bonds edged lower on both sides of the Atlantic and stock indices declined modestly across the board. The euro weakened against most advanced economies’ currencies and fluctuated around $1.09. Today the focus will be on November preliminary consumer confidence indicator for the euro area.