Financial Markets Daily Report

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Risk aversion continued to increase at the start of the week.

Markets ended the week in a risk-off mood.

In a session in which the focus was expected to be the FOMC meeting and the Q1 2020 US GDP release, investors shifted their attention to the expectations of an effective COVID-19 treatment.

In yesterday's session, investor sentiment improved as some European countries and U.S. states moved toward gradually reopening their economies.

In the first session of the week, investor sentiment improved as covid-19 deaths slowed in Europe and some major economies moved shyly toward reopening. 

In the last session of the week, investors traded cautiously in Europe amid dramatic economic sentiment data in Germany (Ifo sentiment fell to the lowest recorded level) and the absence of a clear EU-wide proposal to fund the recovery in Thursday’s European Council meeting.

Volatility nudged down and most global stock indices advanced, while oil prices rose as OPEC+ producers said they would accelerate planned production cuts.

A rebound in oil prices drove volatility down and fostered generalized gains across stock markets.

Turmoil in oil markets triggered a fresh bout of risk aversion in yesterday's session.

In a day of chaos in oil markets, weak global demand and rapidly filling storage led to a slump in oil prices.

Markets ended the week on an upbeat note as investors saw advanced economies being past the peak of new coronavirus deaths and focused on the release of government guidelines for easing lockdown measures.

In yesterday’s session, investors traded cautiously amid more recession-like data releases.