The lackluster week has restricted the financial market’s growth despite the previous week spelling positive outcomes. European markets are falling on rising yields with minimal growth, losing the previous week’s optimism. In addition, traders and investors are showing concerns regarding surging energy prices and potential inflation.
China’s Q3 GDP amount disappointed the market as many were eyeing the second-biggest economy’s growth. Moreover, a quick rise in New Zealand inflation is boosting yields in the European markets.
Another reason behind the boost is Andrew Bailey’s (Governor of the Bank of England) comments during the weekend. Andrew stated that the Bank of England might react to increasing inflationary pressures in the short run.
United Kingdom markets have already increased the prices and will go up even further from next month.
Meanwhile, United States markets finished the previous week solidly with the best numbers since June. However, the markets dipped a bit this week as investors got ready for new company reports after the September report noted a 1.3% decrease.
The United States yields are surging gradually, with the ten years almost touching the 1.6% growth mark. The CMC markets are eyeing Goldman Sachs as its shares performed the best this week. Conversely, Disney suffered a great deal after a downgrade by Barclays. You can also read the full review of CMC markets from our post.
Despite Andrew’s comments, the money market does not seem to be phased. The market is witnessing a modest surge in rates, while bond markets certainly accounted for the governor’s comments. Moreover, the bank is still purchasing assets, suggesting that markets focus on the carts and not the horses.
The latest headline CPI suggests that the NZD is one of the best performers for the week, with almost 2.2% growth. However, central banks are taking pre-emptive measures to address the upcoming upward pressure since the currency already surged once this month.
In the commodity market, crude oil prices are still slowing down as Brent retests its 2018 highs. Similarly, the United States crude prices are also surging, reaching their 7-year peaks. The reason behind the surge is the demand shift from natural gas, seeing its consistently rising prices.
Meanwhile, the crypto market is rejoicing as Bitcoin breaks through the 60k dollar mark. The crypto might break its all-time high this year at the current pace.