Investors continued to trade with a risk-on mood on Wednesday, easing worries about rising inflation and shrugging off hawkish signals sent by some Fed officials throughout the week, including Fed Vice Chair for supervision Randal Quarles. Equity markets rose modestly, led by tech stocks, while volatility receded.
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Wall Street's main indexes closed little changed as investors weighed inflation concerns and a fresh surge in so-called "meme stocks" : AMC jumped 97.44%. European equities closed at another record high amid hopes of a strong economic rebound that boosted cyclical stocks.
Investors traded with a positive mood on Wednesday, easing concerns about a rapid withdrawal of monetary accommodation by the major central banks.
Last Friday, investors' sentiment worsened amid rising COVID-19 cases, now more contagious with the Delta variant.
Investors traded more cautiously in yesterday's session as several regional Fed presidents (Bullard, George, Kaplan) signaled that they favor tapering asset purchases soon. Volatility rose and stock markets declined across advanced and emerging economies.
Financial markets ended the day with mixed results, as investors balanced fears about lingering supply constraints and pandemic-related risks with expectations that monetary policy will remain accommodative.
Investors ended the week in a mixed mood. Volatility jumped and stock markets declined across many advanced economies. In contrast, EM equities posted moderate gains.
Markets started the week on a moderately positive note. In a session with no major economic releases, volatility declined, stocks rose moderately across advanced economies, and EM equities were mixed.
Markets were mixed on Thursday. EM and U.S. stocks ended lower while European equities rebounded from a seven-week low, led by the travel and leisure sector.
Financial markets started the week with a risk-off session fuelled by concerns that Evergrande, a giant property developer in China, is facing a liquidity crisis and might not be able to service its debt repayments.
In yesterday's session, investors traded cautiously as they weighed signs of building inflationary pressures with positive corporate results and better-than-expected economic data releases.
Investors traded with a risk-on mood on Tuesday, extending recent gains across equity markets following the release of positive economic data and solid corporate results.
In yesterday's session investors traded cautiously as, again, inflation concerns and monetary policymakers' comments centered the stage.
A mixed session for financial markets packed with economic data releases ahead of a holiday in the US today (Thanksgiving Day).
In yesterday’s session investors' sentiment improved modestly ahead of today's Federal Reserve meeting, where we expect interest rates to be hiked by 0.25pp. Oil prices declined after lockdowns in China were announced, since that might dampen oil demand, and the barrel of Brent fluctuated below $100.
Investors traded with a risk-on sentiment on Tuesday, still waiting for more information about the ongoing talks between Russia and Ukraine and digesting hawkish signals from central bankers, with various Fed officials supporting a more aggressive normalization of policy interest rates.
During a volatile session, financial markets experienced risk-off flows, as investors took on board another round of hawkish commentaries from various Fed officials, weak sentiment data in Europe and escalating tensions around Ukraine. Today, officials from NATO and EU leaders are meeting in Brussels to discuss new sanctions to Russia.
During a volatile session, markets closed with mixed results, as investors digested a mix of hawkish comments by central bank officials, upbeat corporate earnings reports, positive macro data (e.g. consumer confidence in the eurozone) and a good showing by incumbent French President Macron at a TV debate against FN Le Pen.
In yesterday's session, sentiment recovered somewhat as investors continued to assess the inflation and growth outlook amid several central bank officials’ comments.
In yesterday’s session traders searched for safe-haven assets, following weak economic data and hawkish comments from some ECB members, arguing in favor of a 50bp hike in the policy rate in July.