Financial Markets Daily Report

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European stocks stabilized and closed higher, but U.S. stocks were unsteady and ended Wednesday's session lower.

U.S. stock markets showed signs of stabilization after several days of declines while in Europe they continued to registered strong decreases.

Volatility surged and global stock sell-off deepened yesterday with declines around 4% in the U.S. stock markets while in Europe decreases were more moderate. In sovereign bond markets, increased appetite for safe assets resulted into significant decreases in yields.

Developed stock markets continued to register strong declines during the last day of the week as investors adjusted to a surge in global bond yields.

Stock markets suffered losses for the third time in the week, with stronger declines in the Euro Area than in the U.S.

Stock markets stabilized after the losses of the last two sessions and sovereign yields were roughly unchanged.

Stock markets dropped for second consecutive session, with the U.S. S&P500 Index dipping by -1.1 percent and the EuroStoxx 50 Index declining by -1.0 percent.

Stock markets suffered generalized losses, while in fixed-income markets core sovereign yields edged up.

Stocks rose supported by the release of strong earnings, both in the U.S. and Europe, while in fixed-income markets sovereign yields on U.S. and Euro Area bonds edged up.

As expected, the Governing Council of the ECB did not introduce changes in its monetary policy stance and maintained its pledge to move slowly in removing stimulus, repeating that interest rates are expected to remain at present levels until well past the end of net asset purchases.

Yesterday, higher risk aversion translated into declines in most developed stock markets.

Slight increases in most developed stock markets while yields decreased in sovereign bond markets with the yield on the 10-year Treasury that remained above 2.60%.