Financial Markets Daily Report29 November 2023
In Tuesday’s session, investors continued to focus on the narrative that US growth is slowing and that the next move by major central banks will be to cut interest rates at some point next year. This extended the market’s risk-on sentiment of recent weeks, with government bond yields falling across the board and major equity indices rising.
- In Tuesday’s session, investors continued to focus on the narrative that US growth is slowing and that the next move by major central banks will be to cut interest rates at some point next year. This extended the market’s risk-on sentiment of recent weeks, with government bond yields falling across the board and major equity indices rising.
- Investor sentiment was boosted by Fed officials, as Fed’s Waller expressed confidence that the current policy stance should be sufficient to keep inflation in check, while Fed’s Bowman stopped short of outright calling for another hike despite acknowledging the risks. ECB’s Nagel stressed that rate hikes were not necessarily over as inflation could still worsen.
- Against this backdrop, the dollar extended its losses, falling for the fifth session in a row to around 1.10 USD against the euro, while the yen rose to its strongest level in two months. In commodities, the barrel of Brent crude rose ahead of tomorrow’s OPEC+ meeting, which is expected to decide on supply cuts and quotas for 2024.