Financial Markets Daily Report 25 October 2021
Financial markets ended the week with mixed results, balancing the positive tone from the corporate results for the Q3 earning season with disappointing survey economic data in Europe.
- Financial markets ended the week with mixed results, balancing the positive tone from the corporate results for the Q3 earning season with disappointing survey economic data in Europe.
- The flash PMI releases showed growth slowing down in October in the euro area, with the composite index falling by 1.9 pts to 54.3. In the U.S., the PMI surprised to the upside (57.3 from 55.0). In both economic areas, however, the composition confirmed that inflationary pressures are intensifying.
- In this context, equity prices were mixed, rising moderately in Europe but falling in the U.S. Sovereign bond yields hovered around the recent highs, while the USD depreciated slightly against its peers.
- This week the focus will be on the ECB monetary policy meeting on Thursday, a day before the release of the October flash inflation. In addition, the flash Q3 GDP will be released in both the euro area (Thursday) and the U.S. (Friday).