Financial Markets Daily Report27 octubre 2020
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.
Contingut disponible en
- 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.
- In FX markets, the USD strengthened against AE and EM currencies, while in fixed-income markets safe-haven flows drove U.S. and German sovereign yields down. Euro area peripheral spreads were little changed as investors digested S&P's outlook improvement to Italy's sovereign rating last Friday.
- A lower risk appetite also triggered losses in commodity markets, and the price of the barrel of Brent dropped towards $40.
- On the data front, Germany's business sentiment fell for the first time in six months in October according to the Ifo index (92.7 points, down from 93.2 in September).