Investors ended the week in a cautious mood as rising U.S.-China tensions overshadowed a rebound in economic sentiment indicators.
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Financial markets started the week with a mixed session. In Europe, investors traded with a risk-off mood while in the US riskier assets benefited from progress in the negotiations for a new fiscal stimulus package and hopes for a COVID-19 vaccine.
In yesterday's session, financial markets were mixed as traders digested worse-than-expected corporate earnings releases.
Yesterday, investors in the US traded with optimism as the Federal Reserve kept its official interest rates unchanged and reiterated its intention to "act as appropriate to support the economy".
During a busy day for economic data releases, investors digested the record-low GDP growth figures in the US and Germany and demand for safe-haven assets rose.
In August, investors have been trading on a cautiously positive note –weighing the recovery in activity indicators against ongoing and renewed coronavirus outbreaks across advanced and emerging economies. In this context, somewhat lower risk aversion has eased pressures on safe-haven assets and favored the performance of risky assets.
Investors started the week on a positive note amid optimism over medical advances against the coronavirus. Volatility nudged down and stock markets rose across advanced and emerging economies.
Investors traded more cautiously in yesterday's session -in spite of the meeting between U.S. and Chinese trade officials, in which they reaffirmed the implementation of the phase-one trade deal which had been signed in January. In this context, U.S. and EM stocks advanced moderately, while European stock market indices were mixed.
Investor optimism continued to favor risky assets in yesterday's session. Volatility nudged up, but stocks continued to rise across the board.
Markets were mixed in yesterday's session as the Fed and its Chairman Jerome Powell announced a change to the longer-run goals and monetary policy strategy. Volatility rose and stocks declined moderately across AEs and EMs.
In the last session of the week, investors continued to digest the Federal Reserve's new inflation approach, in which it will be more tolerant to inflation increases.
The spread of new COVID-19 cases weakened investor's sentiment in the last session of August. Stock indices declined in most advanced and emerging economies except for the heavy technology-weighted Nasdaq index, in the US, and the Japanese Nikkei.
In a session with mixed economic data, investors traded cautiously in Europe while US assets strengthened further.
Investor traded in a risk-on mood at the start of the week, leading to broad-based gains in stock markets. Gains were stronger in the U.S., further supported by higher hopes over a new fiscal package to stimulate the economy and amid better-than-expected sentiment indicators (the ISM nonmanufacturing rose to 57.8 points in September).
In the first session of the week, investors' mood improved despite an apparent deadlock in negotiations for a new fiscal stimulus package in the US. Stock indices rose in most trading floors and gains were particularly high in the US, where the surge in tech companies pushed the Nasdaq 100 to its biggest advance since April.
Volatility declined and markets favored risk assets in a light economic calendar day. Stocks rose across advanced and emerging economies as investors focused on the prospects of a new fiscal package in the U.S. and the release of the accounts of the ECB's September meeting.
Investors searched for direction in yesterday's session. Asian stocks advanced, European indices were mixed, and U.S. equities jumped as markets regained optimism that a partial deal on more fiscal stimulus could still happen.
Markets were mixed in yesterday's session. Stocks in Asia, Europe and emerging economies recovered some of the lost ground in previous days.
Investors traded in a mixed mood yesterday, as the S&P 500 gained 0.5%, the Eurostoxx50 edged up 0.02%.
Markets ended the month in a mixed session, as European stocks fell and the S&P 500 recovered from the previous day's losses. Safe haven bond yields rose and the dollar appreciated against the euro.