Yesterday, investors in the US traded with optimism as the Federal Reserve kept its official interest rates unchanged and reiterated its intention to "act as appropriate to support the economy".
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In yesterday's session, financial markets were mixed as traders digested worse-than-expected corporate earnings releases.
Financial markets started the week with a mixed session. In Europe, investors traded with a risk-off mood while in the US riskier assets benefited from progress in the negotiations for a new fiscal stimulus package and hopes for a COVID-19 vaccine.
Investors ended the week in a cautious mood as rising U.S.-China tensions overshadowed a rebound in economic sentiment indicators.
Financial markets performed poorly in yesterday's session amid worse-than-expected US labor market data (initial unemployment claims rose last week for the first time since late March) and rising tensions between the US and China.
In yesterday's session, the positive mood that investors showed in the previous days seemed to abate.
Investor optimism around trade talks led to a moderate risk-on mood at the end of the week. In particular, officials said that sections of the first phase of a trade deal between the U.S. and China are nearly completed.
Markets started the week on a risk-on mood and on the back of fresh optimism on U.S.-China trade talks.
Markets exhibited a more cautious tone in yesterday's session, leading stock markets to a mixed performance across advanced and emerging economies.
Markets were mixed as investors eyed the Fed meeting. Ahead of its decisions, European stocks declined moderately and sovereign yields were little changed.
Financial markets ended the week in a positive tone fuelled by better-than-expected data released in the main advanced economies.
Despite the weakness shown in the sentiment indicators for some euro area countries, investors' optimism on trade tensions fuelled risk-on flows.
The appetite for risk that investors showed in the previous sessions seemed to moderate on Tuesday and risk-on flows were more contained.
Markets exhibited a somewhat more positive mood on the back of recovering sentiment indicators and as investors continued to eye trade talks developments.
Financial markets ended the week with a positive tone as investors perceived that a partial trade deal between the U.S. and China is closer. More concretely, the U.S. Commerce Secretary, Wilbur Ross, said that progress was being made in the agreement's details.
Markets continued to reduce their risk appetite after yesterday's release of Chinese indicators and as investors reassess the prospects of closing a U.S.-China deal soon.
Markets tilted towards a risk-off mood in a session dominated by U.S. news. U.S., German and other core sovereign yields declined, euro area peripheral spreads widened, safe-haven currencies (such as the CHF and the JPY) appreciated against the USD (while the euro was roughly stable), and stocks exhibited a poor performance globally.
Markets ended the week with a mixed session in which there were no major economic releases.
On the back of advances in the trade negotiations between the U.S. and China, investor's risk appetite increased in yesterday's session.
Yesterday's session was driven by the last ECB meeting chaired by Mario Draghi and October's flash PMIs