Risk-off session to end the week, as concerns about high valuations in the technology sector and doubts on whether the Federal Reserve will lower rates in December, weighed on investor sentiment. Stocks sold off in the euro area and ended flat in the US, albeit having started the session with losses.
Sovereign yields rose on both sides of the Atlantic. The market-implied probability of a Fed interest rate cut in December has fallen from 70% in early November to 40%. Remarks from Kansas City Fed President Jeffrey Schmidt suggested he would again oppose a cut in the next meeting as inflation is still running too hot.
On the macro front, euro area GDP grew 0.2% in Q3, in line with the first estimate released last month. In China, factory output and retail sales grew at their lowest rate in over a year (4.9% yoy and 2.9% yoy, respectively). Over the weekend, President Trump announced certain agricultural products would be exempt from reciprocal tariffs.
BANCO BPI, S.A., com sede na Avenida da Boavista, 1117, 4100-129 Porto; Capital Social: € 1 293 063 324,98; matriculada na CRC Porto sob o número de matrícula PTIRNMJ 501 214 534, como o número de identificação fiscal 501 214 534. Intermediário financeiro registado na CMVM com o n° 300 e no Banco de Portugal sob o código n° 10. Agente de Seguros n.º 419527591, registado junto da Autoridade de Supervisão de Seguros e Fundos de Pensões em 21/01/2019, e autorizado a exercer atividade nos Ramos de Seguro Vida e Não Vida.