Daily Report

1 de Outubro de 2024
Financial Markets | daily report 01.10.2024
  • Inflation eased below 2% in Germany and Italy in September (1.6% and 0.7% yoy, respectively), as it did in Spain and France. ECB President Lagarde remarked recent data has strengthened the central bank's confidence in the return of inflation to target, sending the probability implied by futures markets of a 25bp cut in the October meeting to 90%.
  • On the other hand, Federal Reserve Chair Powell sounded a bit more hawkish in a speech yesterday, signaling the Fed is not in a hurry to lower rates and reinforcing the view that the speed of cuts will depend on the incoming data. Today, investors will be looking at the JOLTs job openings for signs of labor market cooling.
  • Treasury yields rose and euro area sovereign bonds ended flat. Equities were mixed, with mild advances in the US and losses in the euro area following profit warnings by large auto companies. Chinese stocks continued to rally on the back of expected stimulus measures. Japanese stocks suffered after surprise results in the ruling party's leadership contest.