Resultats de la cerca

Investors started the week in a risk-off mood as polls showed a tight race in today's US presidential election, which could potentially delay the vote count for weeks. Government bond yields were mixed in the eurozone and fell in the US, especially the longer-dated references, as traders await this Thursday's Fed meeting.

Investor sentiment diverged on both sides of the Atlantic yesterday. In the Eurozone, government bond yields were mixed, with French spreads widening after the European Commission endorsed the French draft budget for 2025, which aims to reduce public deficit from 6.1% of GDP to 5%. The budget has yet to be approved in parliament amid a political stalemate.

Investors started the week in a cautious mood as they eye the upcoming G20 summit at the end of this week, in which Presidents Trump and Xi Jinping are expected to meet and discuss the possibility of resuming trade talks.

Political tensions in France took center stage during yesterday's session after far-right and far-left parties submitted no-confidence motions against Prime Minister Barnier, risking the collapse of the current government. French government yields rose, its risk premium widened further, and the euro sold-off to 1.05 against the dollar.

Financial markets started the week with subdued trading and no relevant macroeconomic data releases. Government bond yields fell slightly in the US and rose in the eurozone, with curves flattening and peripheral spreads flat. Several ECB officials highlighted yesterday their concerns about Trump's protectionist plans impact on growth rather than inflation.

Investors' risk appetite eased slightly on Friday as the day's US macro data supported a more hawkish Fed, right after Powell had hinted at a slower pace of Fed cuts on Thursday. The US economy remains strong: retail sales rose in October and the NY Empire Manufacturing survey surprised to the upside, while October import prices also surprised to the upside.

Investors traded cautiously ahead of today's FOMC decision (a 25bp interest rate cut is widely discounted) and the BoE on Thursday (expected to hold interest rates at 4.75%). On the macro data front, US retail sales rose 0.6% m/m in November, and in Germany, the IFO expectations index surprised to the downside as confidence in the country continued to weaken.

Investor risk appetite remained fairly high as the US election results were digested. The Fed cut rates by 25bps yesterday as expected (as did the BoE) noting an easing labour market and robust economic growth. Investors regarded the rise in US jobless claims last week as due to hurricane disruptions. Treasury yields fell, reversing some of the previous day's moves. 

Investor's mood all over the world was driven by Trump's victory in the US election, which was larger than expected and avoided uncertainty and volatility in financial markets. Trump's economic plans, which could boost the US economy in the short term, but reduce potential growth and create inflation in the long term, shaped investor's reaction. 

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.

In yesterday's volatile session, investors remained concerned about the implications the Russian-Ukrainian conflict can have on economic activity and inflation. Nevertheless, rumors that the EU is discussing a plan to increase the joint issuance of bonds benefited risk perception in Europe.

After the risk-off session of Monday, triggered by the depreciation of the Chinese yuan above the 7 yuans per US dollar threshold, financial markets' volatility moderated and stock indices edged down in Europe and rose in the US.

The ECB cut interest rates by 25bp for the third time since June, and as expected by financial markets, lowered the deposit rate to 3.25%. The decision was based on increased confidence that inflation is close to target and a shift to a more negative short-term outlook for the euro area economy.

Investors ended the week on a positive note, as risk appetite increased on the back of the ECB’s rate cut, another round of stimulus measures announced by the Chinese authorities, and strong Q3 US corporate earnings.

In the last session of the week, stock indices rose in the US and core euro area following positive corporate results and the better-than-expected GDP growth figures in the US.

Yesterday, the prevailing mood in the financial markets was calm before the end of Federal Reserve's meeting. Investors expect the central bank to keep the pace of asset purchases unchanged until at least August or September.

In the last session of the week, investors traded cautiously amid ongoing talks between Russian and Ukrainian authorities, although during the weekend Russia intensified aerial attacks on the western part of Ukraine. This week talks are expected to continue between both countries and officials from China and the US will also hold a meeting.

The military operations of Russia in Ukraine centered the stage in yesterday’s session and investors traded on a risk-off mood. Stock indices declined in the euro area, Asia and Latin America, while US equities rose, as they already declined in the previous session. Russian equities fell by almost 50%.

In the first session of the week, investors traded cautiously as they await for the Federal Reserve monetary policy decision on Wednesday and for news on the trade talks.