Financial Markets Daily Report

Cerca

Investors started the week on a risk-off mood. Amid rising coronavirus cases, tighter mobility restrictions in Europe and little progress in U.S. fiscal stimulus talks, volatility spiked and stock markets slumped across the board.

Investor risk appetite was mixed in the last session of the week. Advanced-economy stocks gained but EM equities nudged down, while the USD weakened and commodity prices declined.

In yesterday's mixed trading session, the Eurostoxx50 posted a 0.3% loss and European sovereign bond yields edged up as data showed a deterioration of consumer confidence in the euro area.

Yesterday's trading session was mixed and investor sentiment was dominated by news of Brexit negotiations resuming and the prospects of further fiscal stimulus in the U.S.

Investors traded in a mixed mood yesterday as Europe's second wave of coronavirus advances and forces new restrictions in some countries and regions, and prospects for further fiscal stimulus in the U.S. are uncertain. 

EU stocks fell slightly and periphery yields widened as the number of new Covid-19 cases grew and new restrictions were rolled out in a number of countries and regions.

A week-long losing streak in global stock markets ceased on Friday as better than expected earnings results outweighed a worsening of coronavirus cases in the US and Europe. In Europe, the Eurostoxx50 ended the session 1.7% higher despite new coronavirus retrictions in some cities, while the S&P 500 edged up very slightly.

Investors' mood worsened yesterday amid increasing COVID-19 cases around the globe and worse-than-expected employment data in the US. In particular, initial jobless claims increased last week by 898k (+53k compared with the previous week), the highest level since August.

In yesterday's session, investors traded cautiously amid mixed corporate earnings releases in the US and economic data releases broadly in line with consensus expectations.

In yesterday's session, the pause in a vaccine trial after a patient fell ill weighed on sentiment. Stock indices declined across the globe (in the US, Q3 earnings season started disappointing investors) and yields on sovereign bonds edged slightly down. In FX markets, the US dollar strengthened against advanced and emerging economies' currencies.

In the first session of the week, investors' mood improved despite an apparent deadlock in negotiations for a new fiscal stimulus package in the US. Stock indices rose in most trading floors and gains were particularly high in the US, where the surge in tech companies pushed the Nasdaq 100 to its biggest advance since April.

Volatility declined and markets favored risk assets in a light economic calendar day. Stocks rose across advanced and emerging economies as investors focused on the prospects of a new fiscal package in the U.S. and the release of the accounts of the ECB's September meeting.