Financial Markets Daily Report28 November 2023
Investors started the week on a downbeat note, with sovereign bond yields falling across the board on both sides of the Atlantic, as expectations grew that major central banks may be done with interest rate hikes. In the Eurozone, however, Lagarde stressed that strong wage growth does not yet allow the ECB to declare victory over inflation.
- Investors started the week on a downbeat note, with sovereign bond yields falling across the board on both sides of the Atlantic, as expectations grew that major central banks may be done with interest rate hikes. In the Eurozone, however, Lagarde stressed that strong wage growth does not yet allow the ECB to declare victory over inflation.
- On the other hand, sovereign bond yields in Europe were pushed down by the supplementary budget presented by the German government to partially cover the €60bn of funds blocked by the Constitutional Court.
- In the FX market, the dollar fell for the fourth session in a row. Falling US home sales in October, even as prices fell, reinforced expectations that the Fed will not raise rates again, weighing on the USD and boosting Asian currencies.
- Major equity indices registered little losses and, in the commodities markets, the price of the European natural gas benchmark, the Dutch TTF, fell sharply on the back of warm weather and a healthy reserve levels.