Financial Markets Daily Report15 February 2021
Markets ended the week on a positive note as investors continued to eye negotiations on a new fiscal package in the U.S. Volatility declined and stocks rose across advanced and emerging economies. Commodity prices also benefited from positive sentiment and ended the session higher.
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- Markets ended the week on a positive note as investors continued to eye negotiations on a new fiscal package in the U.S. Volatility declined and stocks rose across advanced and emerging economies. Commodity prices also benefited from positive sentiment and ended the session higher.
- In fixed-income markets, curves steepened and sovereign interest rates edged up both in the U.S. and in core and peripheral euro area countries. Italy's risk premium ticked down 1bp as Mario Draghi was sworn in as the new prime minister in a unity government. He announced a cabinet containing a mix of technocratic and political ministers.
- On the data front, UK GDP expanded by 1.0% qoq in Q4 2020 but remained -7.8% below pre-pandemic levels (2020 growth: -9.9%). This week the focus will be on the release of the accounts of the Fed and the ECB's January monetary policy meetings as well as on February flash sentiment indicators in the U.S. and the euro area.