Financial Markets Daily Report22 June 2021
In the first session of the week after the Fed meeting, monetary policy and inflation remained the key focus for investors. Robert Kaplan and James Bullard explained that starting the tapering discussion was positive while Jerome Powell noted that the Fed will keep stimulus in place for as long as it takes to complete the recovery.
- In the first session of the week after the Fed meeting, monetary policy and inflation remained the key focus for investors. Robert Kaplan and James Bullard explained that starting the tapering discussion was positive while Jerome Powell noted that the Fed will keep stimulus in place for as long as it takes to complete the recovery.
- Meanwhile, in Europe, Christine Lagarde said before the Committee on Economic and Monetary Affairs of the European Parliament that the euro area and the US economies are clearly at different stages. Although she recognized that there might be some spillovers on inflation and GDP coming from the US, those would be moderate.
- In this context, stock indices advanced on both sides of the Atlantic, yields on sovereign bonds edged up and euro area peripheral spreads widened. Elsewhere, the US dollar weakened against most advanced economies and oil prices continued to increase, fluctuating just below $75.