Financial Markets Daily Report29 November 2021
Financial markets closed the week with a sell-off session amid concerns of a new coronavirus variant identified in South Africa. The main concerns are the speed at which this variant can spread and whether it will be immune to the vaccines. Volatility rose and demand for safe assets increased.
- Financial markets closed the week with a sell-off session amid concerns of a new coronavirus variant identified in South Africa. The main concerns are the speed at which this variant can spread and whether it will be immune to the vaccines. Volatility rose and demand for safe assets increased.
- In this context, yields on 10-year sovereign bonds plunged (U.S. Treasuries -16bp, German bund -8bp) due to the safe-haven flows and a push back of investor's expectations of interest rates hikes in the U.S. In FX markets, the Japanese Yen, the Swiss Franc and the euro strengthened against the U.S. dollar.
- In stock markets, equities sank across the board, with health care and defensive sectors overperforming the rest.
- This week the focus will be on November's European Commission confidence indicators (Mon.), Spain and euro area inflation (Mon. & Tue.), the OECD Economic Outlook (Wed.), U.S. employment report (Fri.) and November final PMIs.