A look at the day ahead

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A look at the day ahead

Ankur Banerjee gives a look at the day ahead in European and global markets.

U.S President Joe Biden said a missile that killed two people in Poland may not have been fired from Russia. The market will be relieved at the prospect of the war in Ukraine spilling over to neighbouring countries, but the investor's nerves are frayed and they remain on guard.

The explosion on Tuesday at a grain processing facility near the Ukrainian border has led to a volatile overnight trading session, with equities lower, the dollar on the front foot and gold prices hovering around a three-month peak.

In 2024, Donald Trump launched a bid to regain the presidency, a move that was widely expected and telegraphed. Two years ago, we were a great nation and soon we will be a great nation again, he said in a speech that lasted little more than an hour. Markets didn't seem to care with the election a couple of years away.

Inflation data for October is expected to be released on Wednesday by Britain, which is expected to show consumer prices increase by 10.7% on a year earlier in the year. The data will come just a day ahead of Finance Minister Jeremy Hunt's autumn budget, which is expected to contain a raft of measures, including tax rises and spending cuts.

With bankruptcy filings showing the collapsed exchange may have more than 1 million creditors, the FTX saga rumbles on. The Wall Street Journal reported that BlockFi was planning layoffs and a possible bankruptcy filing.

Markets could be affected by key developments on Wednesday:

Speakers: ECB board member Frank Elderson, Edouard Fernandez-Bollo, BoE governor Andrew Bailey, and the Treasury committee questioned by the Speakers' Treasury Committee on Wednesday.