Sujata Rao gives a glimpse at what lies ahead.

Advance prints of the Purchasing Managers’ Indexes will land. The focus of attention will be on input costs and signs of ease.

Additionally, the readings might increase the distance between U.S.-based activity and Europe plagued by COVID, possibly further depressing euro, which hit new 16-month lows Monday.

Monday’s Euro Area Consumer Confidence indicator warned that it had fallen back to pre-pandemic levels. The October PMIs revealed that the bloc’s activity was at its weakest for six months. Meanwhile, businesses saw their costs rise at the fastest rate in 20 years. The British and U.S. PMIs performed better, but there were still shocking price rises.

A price slowdown could be a vindication for central bankers who, until now, have dismissed rising inflation as unsustainable. Jerome Powell, the Fed chairman (reappointed for another four-year term), spoke Monday about the negative impact of rising inflation. A US emergency oil release may be announced later today to lower energy prices.

Powell’s appointment sent the market into frenzy over tightening policy bets. The U.S. has priced three rate hikes for 2022 starting in June.

U.S. Treasury yields rose again on Wednesday morning, after rising by 5-8 basis points. Dollar has also gained against a basket currency for the fifth week straight.

This is when stock market volatility becomes problematic.

Nasdaq’s tech shares which are publicly traded on Nasdaq, were vulnerable to higher rates Monday. The close was weaker despite a slight rally of 2% in bank shares. For European shares, futures signals weakness.

El Salvador’s $1 billion plan to issue a bitcoin-backed bond isn’t proving very beneficial for the currency. It’s currently at its lowest level in a month.

Markets should be more informed by key developments on Tuesday

Tuesday, Nov 23

E.ON will invest $30 Billion in green transition

Jonathan Haskel is a member at -BOE MPC

-ECB speakers: ECB board member Pentti Hakkarainen

U.S. Treasury sells floating rate 2-year and 7-year notes

Survey by -Philly Fed on Non-manufacturing Business Outlook

-Emerging markets: Nigeria central bank meets

-U.S. earnings:  American Eagle (NYSE:), Medtronic (NYSE:), Best Buy, Dollar Tree (NASDAQ:), Abercrombie and Fitch (NYSE:), Hewlett Packard, Nordstrom (NYSE:), Gap, Dell Composite PMIs, https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwnbawvo/Pasted%20image%201637613895675.png