Don’t get carried away | Reuters
A preview of the day ahead in the European and global markets of Anshuman Daga
Markets got all excited after last week’s meteoric rally in global equities, a sharp drop in US Treasury yields and a sharp selloff in the mighty dollar.
But don’t pop the champagne just yet.
Federal Reserve Governor Christopher Waller said Sunday that the Fed may consider slowing the pace of rate hikes at its next meeting, but that shouldn’t be seen as a “softening” of its fight against the crisis. inflation.
As U.S. consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months, Waller said markets are unlikely to get carried away on a single ” data point”.
The comments tempered gains in Asian stock markets on Monday, although Hong Kong and Chinese stocks outperformed as China fine-tuned COVID-19 control measures and regulators ordered additional financial support for the beleaguered real estate sector.
And days before a budget plan was announced, UK Finance Minister Jeremy Hunt said he would propose tax hikes and spending cuts to show Britain could fix its public finances. and restore its economic credibility.
At least the sporting world brought good news to England after captain Ben Stokes kept his cool with half a century unbeaten on Sunday, helping England win their second Twenty20 World Cup title with a five-wicket win against Pakistan.
This week, US retail sales will dominate the data calendar, while markets will also pay attention to flash estimates of third-quarter Eurozone GDP.
As the G20 summit kicks off on the Indonesian island of Bali on Tuesday, US President Joe Biden is expected to meet Chinese leader Xi Jinping in person for the first time since taking office amid US concerns over Taiwan, the war in Russia in Ukraine and North Korea. nuclear ambitions at the top of its agenda.
In the crypto world, after Friday’s shocking collapse of cryptocurrency exchange FTX, Bahamian authorities said they were looking into the demise of the exchange, co-founded by 30-year-old Sam Bankman-Fried. .
And finally, on the European business front, German military equipment maker Rheinmetall (RHMG.DE) has agreed to acquire Spanish explosives and ammunition maker Expal Systems for an enterprise value of €1.2 billion. euros.
Key developments that could influence markets on Monday:
Economic data: Final inflation in September in the euro zone
G20 Leaders Summit on November 16
Fed’s Brainard speaks
Reporting by Anshuman Daga; Editing by Ana Nicolaci da Costa
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