Financial Markets Daily Report30 November 2023
Government bond yields extended their losses across the board on Wednesday as investors continued to focus on future interest rate cuts by major central banks. These expectations were boosted by upwardly revised Q3 US GDP growth figures and better-than-expected November inflation figures in Germany and Spain.
- Government bond yields extended their losses across the board on Wednesday as investors continued to focus on future interest rate cuts by major central banks. These expectations were boosted by upwardly revised Q3 US GDP growth figures and better-than-expected November inflation figures in Germany and Spain.
- Against this backdrop, the dollar weakened further against its major peers, while in the stock markets, major indices rose in Europe but fell in the US and Asia. In the commodities markets, the Brent oil benchmark rose for a second day, ahead of today’s OPEC+ meeting on supply cuts.
- Today’s focus will be on the Fed’s Powell speech, as investors will be looking for confirmation of the dovish bias they have read in recent Fed speakers. On the data front, all eyes will be on the October PCE report for the US and the November CPI figures for the Eurozone.