Financial Markets Daily Report
24 November 2021

Investors continued trading with a risk-off mood, with sentiment gloomed by the deterioration of the COVID situation across Europe and mixed signals from economic sentiment data. Investors were also taking position ahead of the bank holiday in the US later this week.

FMDR
  • Investors continued trading with a risk-off mood, with sentiment gloomed by the deterioration of the COVID situation across Europe and mixed signals from economic sentiment data. Investors were also taking position ahead of the bank holiday in the US later this week.
  • In particular, the flash composite PMI survey for October was positive in the eurozone (55.8 from 54.2) but declined modestly in the US (56.5 from 57.6). In both regions, the survey suggested inflationary pressures are persisting. ECB board member Isabel Schnabel reiterated that there is a risk that the inflation spike could last longer than expected.
  • In this context, stocks were mixed while sovereign bond yields edged up. Oil prices rose modestly despite the announcement by a US-led group of major oil consumers of a coordinated plan to release strategic oil reserves.
  • Today the focus will be on the IFO survey in Germany and the minutes of the November policy meeting by the Fed.
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