Financial Markets Daily Report 28 octubre 2022
Financial markets closed with mixed results during a highly volatile session on Thursday, as investors digested policy announcements by the ECB and upside surprises in economic data in the US (GDP rose by 2.6% SAAR in Q3).
- Financial markets closed with mixed results during a highly volatile session on Thursday, as investors digested policy announcements by the ECB and upside surprises in economic data in the US (GDP rose by 2.6% SAAR in Q3).
- In line with expectations, the ECB decided to hike by 75 bp to 1.5% the depo rate but softened modestly its tone about upcoming increases. In addition, Christine Lagarde said the central bank will discuss its balance sheet strategy at the next meeting in December while unveiled changes to conditions applied to TLTROs.
- In this context, sovereign bond yields fell across the board, more notably for the eurozone periphery. The EUR depreciated modestly, trading around parity against the USD. Stocks were mixed.
- Today, the focus turns to economic growth across the eurozone, with Q3 GDP releases in Spain, France and Germany. Earlier this morning, the Bank of Japan left its accommodative policy stance unchanged.