Tarass Buka, Head of Luminor Investment ManagementPhoto: Drunk Ragelis
The pessimism of the end of October, after several positive stimuli in November, quickly turned into a sudden increase in market prices. November started with positive news from the US Federal Reserve, which kept interest rates unchanged, confirming that the current monetary policy is satisfactory, writes Taras Buka, head of Luminor Investments.
Investors soon changed their forecasts for interest rates, assuming they would fall earlier than previously thought. This was also supported by surprisingly weaker employment data – the US unemployment rate was 3.9% in October, the highest in almost two years. The president of the European Central Bank (ECB), Christine Lagarde, also stated that the monetary policy is currently tight enough to fight inflation, which continued to shrink in the eurozone, falling to 2.4% annually in November.
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