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In yesterday's session investors traded cautiously. Stock indices declined in the US, particularly so the tech-heavy Nasdaq, and were mixed in the euro area.

In the first session of the week, investors traded with a positive and risk-on mood. The release of improving manufacturing PMI data in most countries (with the exception of China) and expectations that the vaccination campaign will be effective contributed to the optimism in financial markets.

In the last session of a volatile week, stock indices declined across the board and yields on sovereign bonds edged down in the euro area and in the US. In particular, the yield on the 10-year US Treasury fell by 12 basis points and fluctuated again below 1.50%.

The global stock rout deepened on Thursday as the sell-off in US Treasuries continued affecting markets across the world. The yield on 10-year US sovereign bonds rose sharply to 1.53%, and the 5-year yield jumped 21 basis points, the second-largest one day increase seen in the past decade, as investors anticipated large stimulus measures. 

Investors traded with optimism during yesterday's session. In Europe,  the upward revision of the German Q4 GDP (from +0.1% qoq to +0.3%), supported by exports and construction, led to a rise of 0.5% in Eurostoxx50. European sovereign yields also rose and peripheral spreads widened slightly. 

Markets were volatile during yesterday's session, as US stocks reversed the losses of earlier in the day. The S&P 500 gained 0.1% on the day after being down 1.8% at one point earlier on Tuesday. The tech-heavy Nasdaq Composite was down 3.9% in early trading before reversing part of the losses and ending the day down just 0.5%.

The sell-off in the US bond market continued on Monday as worries about inflation erode expected bond returns. The yield on 10-year Treasury notes rose 3 basis points to 1.37%. These worries also hit Asian markets, where Japan's 10-year yields rose to 0.13% and Australia's rose to its highest level since June 2019 (1.61%).

Investors traded in a mixed mood on Friday as they became more confident in the economic recovery but also pondered the possibility of rising inflation.

Markets displayed a lower risk appetite in yesterday's session – as investors pondered the impact of rising interest rates on equity markets. Volatility rose and stocks dropped across advanced and emerging economies.

Investors turned more cautious in yesterday's session. Stocks declined moderately in most advanced economies and a lower risk appetite led to USD appreciation against the major currencies.

Investors traded in a more cautious mood in yesterday's session. Optimism about the medium-term economic outlook and recovering inflation expectations led to steeper sovereign yield curves. Yet, stock markets were mixed and closed moderately lower.

Markets started the week showing greater risk appetite as the World Health Organization listed AstraZeneca and Oxford University’s COVID-19 vaccine for emergency use. Stocks rose across advanced and emerging economies, the USD weakened moderately and commodity prices edged up. U.S. markets were closed for the Presidents day holiday.