Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

Marketmind: Red alert

11/28/2022 | 12:37am EST
FILE PHOTO: German share price index DAX graph is pictured at the stock exchange in Frankfurt

A look at the day ahead in European and global markets from Anshuman Daga

Hopes of a quiet close to the final weeks of 2022 are being firmly squashed as rare, widespread protests across China following strict coronavirus curbs fuel risk-off sentiment and batter stocks, while pushing up the safe-haven dollar.

To make matters worse, COVID-19 infections hit a fifth daily record in the country just as restrictions had become less onerous earlier this month and spurred expectations of a full reopening soon.

European markets are likely to take a cue from the wave of red splashed across Asian markets on Monday, while investors will also scrutinise Wednesday's euro zone inflation data to see if the worst of the price surge is behind.

While economists at Citi expect headline inflation to post the first decline since mid-2020, driven by falling energy inflation, European Central Bank's top economic thinkers have been sparring on the outlook for inflation and rates.

Though U.S. inflation may be close to peaking, euro area price pressures remain strong. Inflation in the euro zone was 10.6% in October, more than five times the ECB's 2% target.

Markets are betting on a 50 to 75-basis-point increase at the next Dec. 15 meeting.

Weak oil prices could however stem inflation in the near-term, with U.S. West Texas Intermediate (WTI) crude futures falling to an 11-month low of $81.16 a barrel on Monday.

Meanwhile, British property market activity stalled in October and house price growth slowed to its lowest quarterly level since February 2020 due to a disastrous "mini-budget" and a cost-of-living crisis, according to a survey released on Monday.

On the corporate front, Andre Helfenstein, the head of Credit Suisse's Swiss unit said in an interview with Swiss newspaper SonntagsZeitung that "some customers have withdrawn some of their money, but very few have actually closed their accounts."

The comments come after Switzerland's second-largest bank flagged a hefty loss last week as wealthy clients turn their back on the embattled bank.

Key developments that could influence markets on Monday:

Economic data: Euro zone Oct household loans, UK CBI Nov survey

Speakers: ECB president Christine Lagarde at European Parliament, ECB bank supervisor Elizabeth McCaul speaks about crypto assets, Fed Reserve Bank of New York President John Williams speaks

(Reporting by Anshuman Daga; Editing by Ana Nicolaci da Costa)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / EURO (AUD/EUR) -0.26% 0.65205 Delayed Quote.2.69%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.39% 0.70813 Delayed Quote.4.32%
BANK OF NEW YORK MELLON CORPORATION (THE) -1.09% 50.06 Delayed Quote.9.97%
BRENT OIL -1.45% 85.78 Delayed Quote.1.71%
BRITISH POUND / EURO (GBP/EUR) -0.01% 1.14028 Delayed Quote.0.96%
BRITISH POUND / US DOLLAR (GBP/USD) -0.14% 1.2382 Delayed Quote.2.50%
CANADIAN DOLLAR / EURO (CAD/EUR) -0.12% 0.690574 Delayed Quote.0.25%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.19% 0.74972 Delayed Quote.1.72%
EURO / US DOLLAR (EUR/USD) -0.13% 1.0857 Delayed Quote.1.57%
HALMA PLC -1.08% 2115 Delayed Quote.7.14%
INDIAN RUPEE / EURO (INR/EUR) -0.12% 0.011276 Delayed Quote.-0.06%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.16% 0.012251 Delayed Quote.1.48%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.14% 0.64824 Delayed Quote.2.27%
S&P GSCI CRUDE OIL INDEX -0.68% 433.684 Real-time Quote.1.18%
US DOLLAR / EURO (USD/EUR) 0.12% 0.921065 Delayed Quote.-1.51%
WTI -1.30% 79.075 Delayed Quote.0.75%
Latest news "Economy"
02:46aFrom boom to bottom and now big change: Renault and Nissan reshape alliance
RE
02:37aUkraine war to accelerate shift to clean energy, BP says
RE
02:35aShell to combine LNG and upstream businesses in CEO's overhaul
RE
02:34aHong kong's hang seng tech index down 5%…
RE
02:34aIndia's top court to consider cases against block on BBC documentary
RE
02:34aUK's Shaftesbury says tenant trading above pre-pandemic levels
RE
02:34aUK insurer Legal & General's CEO Wilson to retire
RE
02:33aPizza company DP Eurasia FY sales jump 77%
RE
02:30aLidl GB says will invest 4 billion stg in UK food businesses in 2023
RE
02:29aCanada's CPPI invests $205 million in Indian co IndoSpace's new fund
RE
Latest news "Economy"