Opening Markets November 10, 2023 | Self Bank Blog

Closing trading The MSCI World global index saw a 0.33% drop. The fall in U.S. stocks was driven by statements from Federal Reserve Chairman Jerome Powell, who indicated the possibility of further interest rate hikes at the next meetings of the monetary authority. Powell noted the importance of monetary policy compression until inflation figures show clear signs of stabilizing around the 2.0% target. Those words triggered a rise in government bond yields and a decline in stocks, a general fall in Wall Street indexes.

In the business sector

the release of Walt Disney Company's financial results, which exceeded expectations, as well as the manufacturing company''Arm semiconductors, which will have lower-than-expected earnings. In this context, the Nasdaq Composite fell 0.94%, the S&P 500 0.81% and the Dow Jones 0.65%.

Asia-Pacific

The region's stock markets are experiencing a general downturn. The session in Asia-Pacific stock markets is in the red zone and echoing Wall Street's performance yesterday. Jerome Powell's tough comments coupled with disappointing Chinese macroeconomic data released in recent days are factors that are limiting investor sentiment. In addition, disappointing results from semiconductor company Arm and China's SMIC's decision to increase investment within China, which could alter the industry's value chain and create''s excess demand, contributed to the overall decline of the technology sector. In this situation, the Shanghai Composite Index fell 0.48%, Hong Kong's Hang Seng 1.72% and Japan's Nikkei 225 0.16%.

Fond indices (futures)

Futures foreshadow a session in the red zone In the absence of significant macroeconomic data, investors will once again turn their attention to the publication of financial results of companies such as Allianz or, in Spain, ACS and Cellnex.

Government bonds

There has been a rise in government bond yields. Tough statements from the Fed chairman yesterday, arguing that the current cycle of interest rate hikes may not be over yet, and''leaving room for new rises if prices rise, triggered a rise in government bond yields, especially in longer maturities. Today's session starts with yields rising further, with the German 10-year Bund up 4pc to 2.70% and the Spanish Bund to 3.75%. In addition, the 10-year US Treasury bond yields 4.62%.

Commodities

The gold price started today down 0.14% to $1.954. Meanwhile, the price of Brent crude oil rose 0.51% to $80.4 per barrel.

Currency

The euro/dollar exchange rate is at 1.066 on the currency market.

Volatility

The S&P 500 VIX volatility index closed yesterday at 15.3 points (+5.8%).

Other important news

VP''UK The UK economy posted a 0.2% month-on-month growth in manufacturing in September, slightly above the previous month's growth and above analysts' expected consensus of 0.0%. GDP growth in the third quarter was thus 0.6% on an annualized basis, although zero occurred on a quarterly basis (in contrast to +0.2% in the second quarter). The improvement in economic activity in September was largely driven by industrial production, which increased by 1.5% on an annualized basis, in line with the trend of the previous month. In turn, the services sector showed a slight decline of 0.1%, reinforcing expectations that the economy will continue to slow down, and GDP according to the International Monetary Fund will grow by only 0.5% in the''2023. In 2024, the UK's challenging domestic and external macroeconomic environment will limit GDP growth to 0.6%.