Financial markets started the week with caution as they await for more earnings releases, which will be a key driver of stock markets in the next sessions.
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Trade tensions, monetary policy and economic data releases were the drivers of yesterday session.
Investor sentiment worsened slightly in a context of persisting trade tensions and mixed corporate earnings releases.
US monetary policy makers centered the stage in yesterday's session, as some Fed officials argued for a shift in monetary policy towards a more dovish stance.
As July's main central banks meetings are getting closer, monetary policy is taking center stage in financial markets.
Financial markets started the week in a cautious mood as investors await for the ECB monetary policy meeting on Thursday and for more Q2 earnings releases.
Investor sentiment improved on the back of relatively positive earnings releases in Europe and in the US.
The main drivers of yesterday's session were corporate earnings releases and weak economic sentiment data in Europe.
In yesterday session, stock indices declined in the US, after several weak Q2 corporate results, and in Europe, after Draghi missed market expectations since they expected a more dovish press conference.
In the last session of the week, stock indices rose in the US and core euro area following positive corporate results and the better-than-expected GDP growth figures in the US.
In the first session of the week, investors traded cautiously as they await for the Federal Reserve monetary policy decision on Wednesday and for news on the trade talks.
Stock markets decreased across the globe as investors perceived that trade talks between the US and China made very little progress.
Yesterday, Fed's 25 bp interest rate cut and the economic releases in Europe took center stage.
Trade concerns returned to financial markets' center stage as Donald Trump announced that the US will impose 10% tariffs on the remaining $300 billion Chinese imports, starting on September 1st.
Escalating trade tensions between the US and China worsened investor sentiment and motivated safe-haven flows in the last session of the week.
Financial markets buckled on Monday after China let its yuan weaken below 7 to the dollar, an 11 year low, adding to broad risk aversion on concerns about the escalation of the US – China trade tensions.
After the risk-off session of Monday, triggered by the depreciation of the Chinese yuan above the 7 yuans per US dollar threshold, financial markets' volatility moderated and stock indices edged down in Europe and rose in the US.
Stock markets rose mildly in most trading floors while yields on sovereign bonds edged up in the US and declined in the euro area (the German Bund reached a new minimum yielding -0.58%).
Markets are suffering a turbulent summer.
Markets started the week on a constructive note as investors found support on positive geopolitical gestures.