Financial Markets Daily Report08 April 2021
Yesterday, investors traded in a low volatility environment as the Fed's last meeting minutes reiterated its intention to keep the monetary policy stance unchanged for some time. Nevertheless, as it was anticipated in the dot plot, several members argued that they would favor raising rates earlier than the FOMC’s median view.
- Yesterday, investors traded in a low volatility environment as the Fed's last meeting minutes reiterated its intention to keep the monetary policy stance unchanged for some time. Nevertheless, as it was anticipated in the dot plot, several members argued that they would favor raising rates earlier than the FOMC’s median view.
- Regarding the ECB, yesterday we knew that weekly net purchases under the PEPP fell to 10.6bn (19bn in the previous week), probably due to larger redemptions and calendar effects. Also, Klaas Knot, from the Dutch central bank, suggested that the ECB could start phasing its emergency program as soon as in Q3 , but keeping the APP unchanged.
- In this context, stock indices were mixed and yields on long term sovereign bonds edged down in core euro area countries. In FX markets, the US dollar strengthened against most advanced economies currencies and the euro fluctuated below $1.19.