Financial Markets Daily Report 29 October 2021
In an eventful session, investors traded with a risk-on mood and stock indices rose in the U.S. and in most euro area trading floors. In fixed-income markets, sovereign yields edged up in both sides of the Atlantic, specially so in Italy, where Mario Draghi presented the 2022 fiscal budget with some tax cuts and an increase in the retirement age.
- In an eventful session, investors traded with a risk-on mood and stock indices rose in the U.S. and in most euro area trading floors. In fixed-income markets, sovereign yields edged up in both sides of the Atlantic, specially so in Italy, where Mario Draghi presented the 2022 fiscal budget with some tax cuts and an increase in the retirement age.
- On the data front, yesterday we knew that U.S. GDP advanced by 0.5% QoQ in Q3, a much moderate pace than in the previous quarter (+1.6% QoQ) due to the spread of the Delta variant and supply bottlenecks. In Spain, inflation reached 5.5% in October (4.0% in September), the highest level since 1992.
- Meanwhile, Lagarde reiterated after the ECB meeting that the current inflation spike is transitory and, although it might increase further in Q4, it will moderate during 2022. Hence, the ECB kept interest rates and the pace of net asset purchases unchanged. Today, euro area's and Spain's Q3 GDP and euro area October inflation figures will be released.