07 juny 2019
In yesterday session, global financial markets were driven by the dovish communication from the ECB and the developments in the negotiations between the U.S. and Mexico.
Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
In yesterday session, global financial markets were driven by the dovish communication from the ECB and the developments in the negotiations between the U.S. and Mexico.
Financial markets' tone improved for the second day in a row on the back of previous Fed comments saying that it would support the economy in case the scenario worsens, mixed economic data releases and brighter investor expectations on trade tensions between Mexico and the U.S.
Investors welcomed Fed Chairman Jerome Powell comments saying that the Federal Reserve is monitoring the possible implications of trade tensions and that it "will act as appropriate to sustain the expansion".
In yesterday's session, investor sentiment improved slightly from the risk-off mood that dominated last week.
Driven mainly by the trade tensions of the U.S. with China and, more recently, Mexico, stock indices in advanced economies declined, the price of gold rose and the Japanese Yen appreciated, in a canonical example of a risk-off session.
U.S.-China trade tensions (most recently, China's threat to restrict exports of rare earths, as pointed in yesterday's comment).
Escalating tensions between the U.S. and China led to higher financial volatility and a shift from risky assets to safe bonds in yesterday's session.
With U.S. markets closed for the Memorial Day holiday, European stocks advanced moderately at the start of the week as investors digested the results of the weekend's European Parliament election.
Markets closed a volatile week on a relatively quiet note. Stocks rose moderately across advanced and emerging economies and U.S. and German sovereign yields were stable around their year-lows.