Sujata gives a glimpse at what lies ahead.

After expectations of central banks being hawkish, flattening yield curves on bonds and an equity correction in the beginning of this week, things are now calmer after Fed assurances that no rate increases were planned. The Bank of England shocked markets with its steady policy and assured that they would not raise rates again.

The bond curves tend to be steeper, as rates hike expectations decline — the Treasury yield for two years has fallen more than 10 basis points from 19-month peak of 0.5640% last week.

The yield on Britain’s 2-year gilt fell nearly 21 basis points after Thursday’s UK rate announcement — the largest one-day drop since after the Brexit vote in 2016.

Global equities are heading towards the $100 trillion market cap mark, with either inflation-adjusted or real yields returning to their previous fall.

It is possible that there will be some central bank-fueled problems. Don’t forget China’s property crisis. Shares in Kaisa, a Chinese homebuilder, were suspended when an affiliate failed to pay a payment. The move pulled Chinese bourses lower as well as knocking European and U.S. Futures.

The economic data continues to be subpar, with Germany’s industrial production falling sharply in September due to supply problems. Japan’s households saw a drop in spending in September, indicating that the economy contracted in the third quarter.

Keep an eye out for U.S. monthly payrolls and euro-area retail sales. A Reuters poll projects that 450,000 additional jobs will be added in the US this month. Remember last month’s disappointing report? Stock market bulls will be keeping an eye on it.

Markets should be more informed by Friday’s key developments

British Airways parent company IAG, (LON) stated that it expected to lose 3 billion euros in 2021 [L8N2RW1LA]

Due to a lack of chips, Honda’s profits outlook is lowered by 15% [L1N2RW09Z]

Uber makes its first quarterly operating profit

-ECB speakers: Vice-President Luis de Guindos, board member Fabio Panetta

British house prices increased 0.9% in October

-Data: Euro zone retail sales, U.S. non farm payrolls

Meeting of the Central Bank of Argentina

– Europe earnings;  Amadeus, IAG

(For graphic on Market cap – https://fingfx.thomsonreuters.com/gfx/mkt/akpezmzdnvr/Pasted%20image%201636064587708.png)