Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Yesterday investors traded with optimism amid better than expected economic sentiment data in advanced economies. In particular, the U.S. non-manufacturing ISM index for September increased by 0.2 points to 61.9 while the final Composite PMI in the euro area remained at elevated levels (56.2) despite falling by 2.8 points.
In the first session of the week, investors sentiment worsened and stock indices declined across the board, led by the tech sector. The euro area Sentix Confidence Index fell by 2.7 points to 16.9 in October, the third consecutive decline.
Investors ended the week with mixed results, as fears intensified that inflationary pressures are building up across the globe. The headline HICP in the Eurozone rose to levels not seen since 2008 (3.4% y/y in September) while in the U.S. the PCE deflator remained elevated (4.3% y/y august).
During the last session of the quarter, financial markets traded cautiously amid concerns on inflation, fiscal uncertainty in the U.S. and ahead of relevant economic data releases today.
Yesterday markets steadied after a few mixed sessions. Volatility nudged down and European stocks rebounded, while U.S. equities posted moderate gains.
Markets suffered a risk-off session amid concerns over the debt ceiling in the U.S. Volatility jumped and stocks were lower across advanced and emerging economies as Republicans blocked a Democratic move to raise the debt limit. U.S. Treasury Secretary Janet Yellen warned that her department will run out of cash around October 18.
Investors traded in a cautious mood in the first session of the week. Volatility rose, U.S. equities declined moderately and European and EM stocks nudged up.
Markets ended the week in a mixed mood as investors pondered over the Fed's plans for stimuli withdrawal, risks from China's Evergrande and the announcement that Chinese authorities will ban all transactions and mining related to cryptocurrencies. Global stocks declined or closed flat while the USD rose against most AE and EM currencies.
Yesterday's FOMC meeting was received without major surprises by financial markets. The Fed announced, as broadly expected, that the tapering on asset purchases would start soon if economic indicators come in as expected and that net asset purchases would finish by mid-2022.
In yesterday’s session, investors’ sentiment improved as concerns on Chinese Evergrande’s fallout eased.
Financial markets started the week with a risk-off session fuelled by concerns that Evergrande, a giant property developer in China, is facing a liquidity crisis and might not be able to service its debt repayments.
In a session with a Triple witching hour in the U.S., an event that usually increases volume and volatility as several futures and options expire simultaneously, stock indices declined in the euro area and in the U.S. while sovereign yields edged moderately up on both sides of the Atlantic.