Financial Markets Daily Report31 October 2023
In yesterday's session, euro area economic releases took center stage. Lower-than-expected October y/y inflation in Germany (3.0% vs 3.3% expected) and in Spain (3.5% vs 3.8% expected) pushed euro area sovereign yields down and the area's main stock indices up. 3Q German GDP growth came in at -0.1% vs -0.2% expected.
- In yesterday's session, euro area economic releases took center stage. Lower-than-expected October y/y inflation in Germany (3.0% vs 3.3% expected) and in Spain (3.5% vs 3.8% expected) pushed euro area sovereign yields down and the area's main stock indices up. 3Q German GDP growth came in at -0.1% vs -0.2% expected.
- In the US, treasury yields advanced ahead of the FOMC meeting this week, while stocks climbed led by some mega-cap tech companies. Elsewhere, the price of oil dropped 3% as Israel's ground incursion in Gaza has been less extensive than expected by markets, and the US dollar weakened allowing the euro to cross the $1.06 mark.
- Today, the focus will be on euro area Q3 GDP and October inflation. This morning we learned Chinese October PMIs missed expectations with the manufacturing index at 49.5 and the non-manufacturing at 50.6 (vs 50.2 and 52.6 expected). The composite index dropped from 52 in September to 50.7 in October.