Markets ended the week mixed. Sovereign yields were broadly stable on both sides of the Atlantic, with curves steepening slightly.In the US, short-term yields declined despite hawkish Fed commentary opposing further rate cuts. In the eurozone, October CPI came broadly in line with expectations (although core inflation surprised slightly to the upside). Very long-term yields rose following the French parliament’s rejection of a wealth tax proposal, which also widened the French spread.
Equities rallied in the US, supported by Amazon’s strong results and ongoing optimism around AI. Eurozone indices paused
after a strong month, as ECB officials reiterated that inflation is likely to remain near target, with modest growth.
In FX, the dollar strengthened modestly against the euro, underpinned by Fed hawkishness. Oil prices rose in a choppy
session amid geopolitical tensions in Venezuela, following contradictory reports of imminent US air strikes, while gold
retreated. In Japan, Tokyo core CPI accelerated, mainly due to food prices, maintaining pressure on the BoJ to tighten policy .