Financial Markets Daily Report26 May 2021
During a volatile session, markets erased some of the early gains after comments by Fed VP Richard Clarida noting that the central bank could start discussing in upcoming meetings adjusting the pace of asset purchases (tapering). In addition, house prices in the U.S. continued to accelerate while consumer confidence stalled.
- During a volatile session, markets erased some of the early gains after comments by Fed VP Richard Clarida noting that the central bank could start discussing in upcoming meetings adjusting the pace of asset purchases (tapering). In addition, house prices in the U.S. continued to accelerate while consumer confidence stalled.
- U.S. stocks closed slightly lower while, in Europe, results were more positive, boosted by stronger than expected survey sentiment data in Germany (the IFO business climate rose by 2.6 points to 99.2 in May). Sovereign spreads tightened following comments by ECB official Yannis Stournaras on the need to keep the pace of bond purchases.
- In FX markets, the USD continued to depreciate against major trading partners, sending the exchange rate against the EUR to the weakest level since the start of the year. Finally, the oil price declined further on concerns that Iran's possible return to the market could cause a supply glut. There are no major data releases today.