Financial Markets Daily Report
28 November 2022

In the last session of the week, investors weighed better-than-expected economic data in the euro area with mixed signals from central banks about the pace of rate hikes in the coming meetings, including from ECB member Schnabel.

FMDR
  • In the last session of the week, investors weighed better-than-expected economic data in the euro area with mixed signals from central banks about the pace of rate hikes in the coming meetings, including from ECB member Schnabel.
  • In the euro area, Germanys Q3 GDP growth was revised upwards to 0.4% q/q while confidence indicators for November rose in Italy and France. Regarding price pressures, Octobers PPI inflation in Spain eased from 35.6% to 26.1% y/y. The central bank of China decided to lower the required reserve ratio by 0.25pp to 11%.
  • In this context, yields on sovereign bonds rose in the euro area while edging modestly down in the US. Equities were mixed, the euro fluctuated around $1.04 and oil prices declined modestly.
  • This week the focus will be on the EC November confidence indicators (Tue.), the EZ inflation and the second estimate for Q3 US GDP (Wed.), the US labor market report (Fri.) and the manufacturing PMI for the main economies (Thu.).
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