Financial Markets Daily Report 28 October 2021
During a volatile session, financial markets ended with negative results, taking a breath from the recent rally and refocusing on the risks around the growth outlook, lingering inflationary pressures and changes in monetary policy.
- During a volatile session, financial markets ended with negative results, taking a breath from the recent rally and refocusing on the risks around the growth outlook, lingering inflationary pressures and changes in monetary policy.
- In commodities, oil prices fell notably after U.S. crude stockpiles rose more than expected last week (up by 4.3 million barrels versus 1.9 million projected by the consensus), triggering a drop of cyclical stocks and pushing down the S&P 500 stock index from the recent all-time high. In Europe, equity prices also saw moderate declines across the board.
- In the bond market, sovereign bond yields continued to rise in the short end of the curve, as investors reassessed their expectations about the start of the hiking cycle by central banks across developed markets.
- The focus today will be on the ECB meeting: we expect it to raise the tone on inflation pressures but sticking to the view that the current rebound is transitory. In addition, the flash Q3 GDP estimate will be released in the U.S.