Mixed affair for equities as losses ease
|A mixed affair for markets today has seen the DAX and Nasdaq underperform. Meanwhile, the Bank of Canada has lifted rates once more, although the recent rise in variable mortgages will likely limit future hikes.
Markets stabilise after recent declines
“Equity markets have provided a welcome break from the incessant selling pressure that has dominated the week, although today’s mixed session has still seen the Nasdaq and DAX in the red. With the recent losses attributed to last Friday’s earnings rise, this coming Friday provides yet another inflation indicator in the form of the PPI factory pricing figure. Nonetheless, with China starting to moderate their Covid restrictions, there is a hope that the economic suffering in the West will be counteracted by a Asia-led rebound in growth. ”
Bank of Canada raises rates, but look unlikely to do much more
“The Bank of Canada opted to raise rates by another 50-basis points this afternoon, with the committee maintaining their pledge to drive down inflation further despite recent declines. Much like the US, we have seen Canadian CPI track lower over recent months, but the degree to which this will play out remains to be seen. From here we are likely to see the BoC approach their terminal rate, with markets predicting that a 25-basis point hike in January could be the final move before they sit back and await the repercussions. With the UK Halifax HPI index showing a whopping 2.3% collapse in house prices last month, the Bank of Canada will be very wary of tightening further given the implications for the 50% of homeowners on variable mortgages. ”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.