Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Markets ended the week on a negative mood, following the release of weaker than expected employment data in the US (non-farm payrolls rose by 235k in August after 1,053k in July). The disappointing figures could well postpone a decision by the Fed to taper its asset purchases for later this year.
Markets traded on a positive mood in yesterday's session. Optimism on the economic recovery sent commodities and advanced-economy stocks higher, and in FX markets the USD eased against the major currencies. Yet, EM equities and currencies were mixed.
Investors extended their risk apetite amid positive global manufacturing PMI releases. In August, factory activity remained strong in most economies, but several surveys continued to signal disrupted supply chains and labour shortages as the main risks. In the U.S., the input price index fell from 85.7 points towards 79.4.
In the last session of August, investors weighed the slowdown of some economic sentiment indicators (e.g.: U.S. Conference Board's consumer confidence at 113.8 from 125.1 in July and China's Composite PMI down to 48.9 in August from 52.4) against an upside surprise in the euro area inflation.
Financial markets started the week without major turbulences and still digesting Powell's dovish comments from last week. In this sense, Cleveland Federal Reserve President Loretta Mester said yesterday that the inflation spike will be transitory and that the U.S. labor market is not yet at full employment.
In the last session of the week, financial markets generally assessed the long awaited speech of the Fed President in Jackson Hole as dovish. Jerome Powell affirmed the ongoing economic recovery, although he pointed to the evolution of the Delta variant as the main risk.
Investors traded more cautiously in yesterday's session as several regional Fed presidents (Bullard, George, Kaplan) signaled that they favor tapering asset purchases soon. Volatility rose and stock markets declined across advanced and emerging economies.
Markets traded on a positive mood as investors wait for central-bank guidance. Volatility declined and stocks posted moderate gains across advanced and emerging economies.
Markets were mixed in a light-volume session with no major economic releases. A rebound in Chinese equities and rising commodity prices supported EM currencies and triggered gains across emerging-economy stock markets. In advanced-economies, U.S. equities rose moderately while European markets closed mixed.
Investors started the week on a positive mood, favoring risky assets amid supportive economic releases. Volatility declined, stock markets rallied across advanced and emerging economies, most currencies strengthened against the USD and commodity prices rebounded on the back of positive market sentiment.
In August's low trading environment, markets searched for direction as investors continued to weigh the spread of the Delta variant against positive economic indicators and some hawkish-sounding remarks from Fed officials.
Markets ended the week in a mixed mood (stocks declined, safe-haven currencies rose) as investors closed positions ahead of low trading in August. The publication of the Financial Markets Daily Report will stop for a few weeks, but we will be keeping an eye on markets and be back by the end of August. We wish our readers a great summer break.