Financial Markets Daily Report26 August 2021
Markets traded on a positive mood as investors wait for central-bank guidance. Volatility declined and stocks posted moderate gains across advanced and emerging economies.
- Markets traded on a positive mood as investors wait for central-bank guidance. Volatility declined and stocks posted moderate gains across advanced and emerging economies.
- Sovereign yields surged across the U.S. and the euro area amid investor repositioning after a quiet summer. ECB Chief Economist Philip Lane hinted that PEPP purchases might ease a bit in Q4. He also struck a positive note when he pointed that the Delta variant impact on the economy is "quite limited so far".
- In FX markets, the USD and the EUR were little changed. In commodity markets, prices continued to advance and the barrel of Brent oil rose above $72 on the back of a decline in U.S. crude inventories.
- On the data front, German business sentiment nudged down in August according to the Ifo business climate index (99.4 points, still an elevated level by past standards).