Investors ended the week on an upbeat note. Euro area PMIs suggested activity expanded during October (the composite index rose from 51.2 to 52.2), leading to higher sovereign yields and gains in the main equity indices. Cooler-than-expected U.S. inflation reinforced expectations of a Fed interest rate cut and boosted stock markets. The EURUSD held close to 1.16.
In commodities, Brent crude oil continued to trade near $66 per barrel following fresh U.S. sanctions on Russia’s two largest oil companies, while the European gas benchmark held close to €32/MWh. Gold prices continued to ease but remained around $4,100 per ounce, after a strong rally that has lifted prices by nearly 50% this year.
This week, the focus will be on central bank meetings. The Fed will kick things off on Wednesday, with markets fully pricing in a 25bp rate cut. The Bank of Canada will also meet on Wednesday (-25bp expected), and the ECB will round off the week with its meeting on Thursday, where we expect the Governing Council to hold rates steady.
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.