Financial Markets Daily Report
23 September 2022

Yesterday, investors continued to digest the hawkish tone of the main central banks. The Bank of England and the Swiss National Bank decided yesterday to hike interest rate by 50 bp and 75bp to 2.25% and 0.50%, respectively. In the UK the central bank also decided, unanimously, to gradually reduce the size of its balance sheet.

FMDR
  • Yesterday, investors continued to digest the hawkish tone of the main central banks. The Bank of England and the Swiss National Bank decided yesterday to hike interest rate by 50 bp and 75bp to 2.25% and 0.50%, respectively. In the UK the central bank also decided, unanimously, to gradually reduce the size of its balance sheet.
  • Yields on sovereign bonds rose and stock indices declined across the board. The US dollar strengthened against most currencies, except for the Japanese Yen after the BoJ intervened the FX market.
  • In commodity markets, the price of the barrel of Brent edged up while Natural gas prices moderated on the day Russia called for a partial mobilization of reservists.
  • Today the focus will be on the release of September flash PMIs for the main advanced economies. This weekend, the center-right coalition in Italy, led by Fratelli d’Italia, is expected to obtain a majority in the Italian elections.
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