Daily Report

6 de Novembro de 2023
Financial Markets | daily report 06.11.2023
  • In Friday's session, markets traded again with strong risk appetite as investors continued to price in the end of the central banks' tightening cycle. US employment data showed signs of a cooling labor market, further fueling investors' expectations of no further rate hikes. Markets are now pricing in a rate cut in June by the Fed and in April by the ECB.
  • In this context, sovereign bond yields fell sharply both in the US and the euro area, where periphery risk premia tightened most notably for Italy. Stocks rose across the board, leading the S&P 500 to post its best week of the year and the VIX volatility index to continue falling.
  • Elsewhere, the US dollar weakened leaving the euro around $1.07, and oil prices fell, erasing the gains since the start of the conflict in Gaza. This week, the focus will mainly be on the release of final PMI data for euro zone countries and economic sentiment in the US.