In yesterday's session, investors extended the sell-off of equity and most stock indices across advanced economies registered losses. Jerome Powell reiterated in a speech that the Fed is committed with its objectives and that it will keep easy credit conditions even when economic conditions improve.
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In the first session of the week, investors traded with a risk-off mood amid rising COVID-19 cases and concerns that the Delta variant might delay the economic recovery. Demand for safe haven assets (such as US Treasuries, the Swiss Franc or the Japanese Yen) increased.
Volatility edged higher and stocks declined across advanced and emerging economies as U.S. officials played down expectations of a breakthrough in trade talks when Presidents Trump and Xi Jinping meet this week at the G20 summit.
Investors started the week in a cautious mood as they eye the upcoming G20 summit at the end of this week, in which Presidents Trump and Xi Jinping are expected to meet and discuss the possibility of resuming trade talks.
In yesterday session, investors continued to digest the dovish tone set by the main central banks (ECB, BoE, BoJ and Fed). The expectation of monetary policy stimulus in the coming months pushed global stock indices up.
Central bank communication has been in the spotlight of investors for a while, and yesterday's focus was on the Federal Reserve monetary policy meeting.
Stock indices rose across the globe after Draghi said in Sintra's conference that more stimulus will be necessary in case there is no improvement in the risks to the economic outlook.
Financial markets were relatively quiet in the first session of the week as investors await for the several central bank decisions and communications expected for this week (most notably Fed, Bank of England and Bank of Japan).
In the last session of the week, stock indices declined across the globe and sovereign yields edged lower amid continuing concerns over trade tensions between the U.S. and China and better-than-expected U.S. retail sales.
Markets traded in a cautious mood in yesterday's session and advanced-economy stocks advanced moderately.
Risk-off sentiment picked up in yesterday's session as sources talked down expectations on a successful Trump-Xi meeting in the G20 summit. Stocks declined across advanced and emerging economies, driven by technology and commodities shares, and yields on U.S. and German sovereign bonds nudged down.
Markets underwent a relatively quiet session as they paused to assess the scenario.
Global markets started the week on a positive note after U.S. President Trump suspended plans for tariffs on Mexico.
In yesterday session, global financial markets were driven by the dovish communication from the ECB and the developments in the negotiations between the U.S. and Mexico.
Financial markets' tone improved for the second day in a row on the back of previous Fed comments saying that it would support the economy in case the scenario worsens, mixed economic data releases and brighter investor expectations on trade tensions between Mexico and the U.S.
Market sentiment remained positive amid upbeat messages on the trade talks and global stocks advanced moderately.
Investor's sentiment turned slightly pessimistic in yesterday's session as concerns on global growth and trade tensions between the U.S. and the EU reemerged. In this context, stock indices decreased in most advanced economies and yields on sovereign bonds edged down.
Financial markets started the week in a quiet mood as investors awaited the beginning of the earnings' season, the ECB meeting and more clues on the trade negotiations between the U.S. and China.
Financial markets ended the week with an optimistic tone, on the back of better-than-expected employment creation in the U.S. and advances in trade negotiations between the U.S. and China.
Stocks rose across the board as Biden's $1.9tn fiscal package won final approval in the U.S. Congress and CPI data calmed inflation worries. In particular, U.S. CPI inflation rose to 1.7% yoy in February but core inflation nudged down to 1.3% (see our take and why we expect inflation to be under the spotlight in the coming months here).