Daily Report

25 de Novembro de 2024
Financial Markets | daily report 25.11.2024
  • Investors closed the week driven by the November PMI indices, which showed a growing divergence between the Eurozone and US economies. In the US, the composite index climbed to a 31-month high of 55.3 on hopes of pro-business policies from Trump. In the eurozone, both the services and manufacturing indices fell below 50 and disappointed.
  • Eurozone government bond yields fell on the news, especially short-term references, with curves steepening. US Treasury yields were broadly unchanged and curves flattened. Market expectations for the ECB also reacted strongly: a 25 bps was already fully discounted, but the odds of a 50bp hike in December rose from around 15% to about 50%.
  • In the FX market, the dollar extended its gains against the euro on the news. In the equity market, eurozone equity indices were boosted by expectations of lower rates, which however weighed on financials. US indices and bitcoin extended the Trump rally and closed higher. In commodities, oil prices rose on rising geopolitical tensions from Iran and Russia.