Financial Markets Daily Report
24 November 2022

Investors continued to trade with a positive mood ahead of the Thanksgiving holiday in the US (markets will remain closed today). Hopes that central banks could allow less tightening were reinforced by feeble sentiment data and the minutes of the last Fed meeting, where a “substantial majority” of officials backed reducing the pace of rate hikes.

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  • Investors continued to trade with a positive mood ahead of the Thanksgiving holiday in the US (markets will remain closed today). Hopes that central banks could allow less tightening were reinforced by feeble sentiment data and the minutes of the last Fed meeting, where a “substantial majority” of officials backed reducing the pace of rate hikes.
  • On the data front, the composite PMI improved modestly in the eurozone (47.8 in November after 47.3) but fell further in the US (46.3 from 48.2), with the breakdown showing a further easing in input and output costs. In addition, new jobless claims in the US rose modestly in the previous week (to 240.000).
  • In this context, stocks rose while sovereign bond yields fell. Oil prices also declined, following news reporting the EU is considering setting a price cap in the range of $65 to $70 a barrel to Russian oil but to delay its implementation.
  • Today, the ECB releases the accounts of its last meeting while the IFO survey for November is published in Germany.
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