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In yesterday's session, investors traded with a risk-on mood and drew away from safe-haven assets as new weekly jobless claims in the US posted the smallest figure since the start of a pandemic (444k).

Yesterday, investors traded in a risk-off session in which stock indices declined across the board, core euro area sovereign yields ticked down and the US dollar strengthened against most currencies.

In yesterday's session, investors weighed the reopening of economies against inflationary pressures concerns. On the latter, nevertheless, ECB's Villeroy de Galhau said that the inflation spike in the euro area is likely to be temporary and that the monetary policy stance will remain very accommodative for a long time.

Rising COVID-19 cases in some regions and inflation concerns, particularly in the US, were yesterday's main drivers in financial markets. Fed Governor Richard Clarida, though, eased fears of an early monetary policy tightening as he said that April's disappointing employment report showed that further substantial progress has not been made yet.

Investors ended the week on a positive mood. In stock markets, volatility declined and equities surged across advanced and emerging economies on Friday, partially reversing the losses suffered in previous sessions. In FX markets, most advanced and emerging currencies also recovered some ground against the USD.

Investor sentiment steadied in yesterday's session and markets halted a string of volatile sessions this week. U.S. stocks rebounded and European equities continued to advance. Earlier, Asian stocks had closed lower, dragged by the previous days' jump in volatility.

Volatility rose and stocks sold off as investors focused on the outlook for supply shortages and inflation. Stock market losses were widespread across sectors and countries while commodity prices advanced, the USD weakened, and U.S. sovereign yields nudged up.

In the last session of the week investors traded with optimism after April's US employment report came in lower than expected and eased concerns of higher inflation and monetary policy tightening from the Fed.

During a volatile session, stocks almost wiped out their initial gains as technology shares turned lower, offsetting optimism over solid corporate earnings and positive economic data (service ISM and ADP employment surveys).