Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Marketmind: Red alert

Economy Nov 28, 2022 12:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 25, 2022. REUTERS/Staff/File Photo

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head of Credit Suisse's Swiss unit said in an interview with Swiss newspaper SonntagsZeitung that "some customers have withdrawn some of their money, but very few have actually closed their accounts."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

Marketmind: Red alert
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email