Financial Markets Daily Report29 June 2021
In yesterday's session, investors' sentiment worsened as COVID-19 infections increased in some parts of Asia and Europe, despite the vaccination campaign, and some countries imposed new limits to travel, especially from the UK.
- In yesterday's session, investors' sentiment worsened as COVID-19 infections increased in some parts of Asia and Europe, despite the vaccination campaign, and some countries imposed new limits to travel, especially from the UK.
- On monetary policy, ECB members sent opposite signals on the emergency asset purchase programme. While Jens Weidmann and Robert Holzmann (from the German and Austrian central banks, respectively) said that the debate over the PEPP's unwinding should start soon, Fabio Panetta suggested that is too early to withdraw the monetary stimulus.
- In this context, yields on 10-year sovereign bonds declined on both sides of the Atlantic and stock indices in the euro area fell. In the US, equities advanced led by technology companies. In FX markets, the USD strengthened against most G10 currencies and the euro fluctuated above $1.19.
- In oil markets, the price of the barrel of Brent fell below $75 before this week's OPEC+ meeting.