Financial Markets Daily Report08 July 2021
Investors traded with a positive mood on Wednesday, easing concerns about a rapid withdrawal of monetary accommodation by the major central banks.
- Investors traded with a positive mood on Wednesday, easing concerns about a rapid withdrawal of monetary accommodation by the major central banks.
- The minutes of the Fed's June meeting downplayed the risk that official rates could move up in the near term and confirmed that a debate on tapering has only started, with officials refusing to give a timeline for reducing purchases.
- In addition, the ECB will announce today the conclusions of its strategy review (press conference at 13:00 CET). Analysts expect that the definition of price stability might be changed from "below, but close, to 2%" to "close to 2%".
- The news about the central banks fuelled a rally in sovereign bond prices in both Europe and the US (the yield of the 10-year benchmark fell below 1.3%). In addition, stock prices rose globally, led by tech shares, while oil prices continued to erase some of the recent gains waiting for more indications from the OPEC+ countries.