Market Information Friday 11 November 2022

US consumer prices rose 7.7% year-on-year in October, lower than the 7.9% forecast and 8.2% in September. On a monthly basis, prices rose again by 0.4%, the same as a month earlier, while the forecast was for a 0.6% increase. The inflation news made Wall Street euphoric and sent the US stock market sharply higher on Thursday, marking its best day since April 2020.

Canada’s red-hot labor market can weather an economic slump without seeing a major surge in unemployment, the central bank said on Thursday, ahead of another expected interest rate increase. The Bank of Canada has lifted rates by 350 basis points since March, one of its fastest tightening cycles ever, and Governor Tiff Macklem has not ruled out another oversized hike at the next meeting on Dec. 7. Because of the tight labor market and an exceptionally high number of vacant jobs, the economy could decrease without causing a surge in unemployment.

The Bank of Mexico, Banxico, hiked its key interest rate by 75 basis points to a record 10.0% on Thursday, in line with forecasts and following in the footsteps of the U.S. Federal Reserve’s recent three-quarters of a percentage point increase. The bank has raised its target rate by 600 basis points since June 2021, as inflation has blown past Banxico’s target rate of 3%, plus or minus one percentage point. Although some inflation shocks show signs of subsiding, the balance of risks remains tilted to the upside, the central bank said.

The 6M Euribor increased with 1 basis point to 2.33% compared to previous business day. The 10Y Swap decreased with 13 basis points to 2.81% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.