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On Monday, November 3, the German DAX 30 index opened up 36.39 points, or 0.15%, at 23,990.84; the UK FTSE 100 index opened up 18.45 points, or 0.19%, at 9,735.70; the French CAC 40 index opened down 1.70 points, or 0.02%, at 8,119.37; the Euro Stoxx 50 index opened down 0.69 points, or 0.01%, at 5,661.35; the Spanish IBEX 35 index opened up 1.45 points, or 0.01%, at 16,035.15; and the Italian FTSE MIB index opened down 35.32 points, or 0.08%, at 43,140.00.Hyundai Motor: Global sales in October fell 6.9% year-on-year to 351,753 vehicles.On November 3, Times Electric stated on its interactive platform that its power semiconductor business has been supplying Valeo with large quantities of products exported to overseas markets, and it is actively expanding its reach to other customers; its electric drive business has also established its first overseas base in Indonesia and is actively developing overseas market projects through joint venture automotive companies; its new energy power generation business is developing more efficient, reliable, cost-effective, and locally adapted new energy converter products to meet the needs and characteristics of overseas markets; and its marine engineering equipment business is primarily sold overseas.November 3rd - Swiss inflation unexpectedly slowed to near zero, putting pressure on the central bank to take measures to address the strong Swiss franc and boost price growth. Data showed that the October CPI rose 0.1% year-on-year, lower than the previous months 0.2% and also below market expectations of 0.3%. A pressing issue facing the Swiss National Bank (SNB) is that the francs safe-haven status has pushed it to near its highest level in a decade, a strength that could potentially curb inflation by lowering import costs. Core inflation also unexpectedly slowed last month, falling from 0.7% to 0.5%. The latest data will likely frustrate SNB President Schlegel and other officials, who had predicted inflation would accelerate by the end of this year and early 2026. The failure of price growth to recover from the lower end of the 0-2% target range will further complicate policymakers task in the face of a strong Swiss franc. The SNB could choose to intervene in the foreign exchange market, which would inflate its balance sheet and anger the US, or implement negative interest rates, but this could harm the financial system.Rating agency KBW lowered its price target for Berkshire Hathaway (BRK.AN) from $700,000 to $695,000.

EUR/GBP Rebounds from 0.8400 on ECB-BOE Divergence

Larissa Barlow

Apr 26, 2022 10:06

The EUR/GBP pair is reversing course from 0.8400, following a precipitous plunge from Monday's high of 0.8440. The pair has remained firmer in recent trading days, despite the European Central Bank's (ECB) President's speech at the International Monetary Fund (IMF) meeting adopting a dovish position.

 

The ECB's officials do not anticipate a rate hike until its Asset Purchase Program is completed (APP). The central bank has stressed the importance of lowering growth expectations in light of the Ukraine crisis and a large decline in household real income due to increasing energy costs and commodities prices. The circumstances need a stagflationary situation in the eurozone. Meanwhile, investors are focused on Wednesday's speech by ECB President Christine Lagarde. The speech will set the stage for the monetary policy narrative that will be dictated in the policy announcement.

 

Meanwhile, Bank of England (BOE) Governor Andrew Bailey rekindled fears of increasing inflation in the pound area during his testimony on Thursday. As per his directive, investors should begin bracing for a further increase in inflation, which might result in higher interest rates.

 

Although the ECB's Christine Lagarde's speech on Wednesday will be crucial, investors will also be focused on Thursday's eurozone Consumer Confidence report. Euro Consumer Confidence is -16.9, unchanged from its previous close.

EUR/GBP

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