Yesterday, Fed's 25 bp interest rate cut and the economic releases in Europe took center stage.
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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.
Financial markets were mixed in yesterday's session.
Global stocks were mixed and the focus in yesterday's session was on political developments in Europe.
Stock markets rose across advanced and emerging economies as investor sentiment was buoyed by conciliatory remarks on the trade front.
On Friday, markets ended a turbulent August with modest stock market increases and sovereign yields fluctuating around year-lows.
Investors traded cautiously in the first session of the week.
Markets exhibited a positive mood as they were fueled by positive sentiment indicators.
Global markets cheered on news that the U.S. and China would resume formal trade talks.
Financial markets ended the week with a positive tone and stock indices rose in most European and U.S. trading floors.
Financial markets started the week with a positive tone as investors perceived that trade tensions between China and the U.S. moderated.
Investor sentiment continued to improve in yesterday's session as trade tensions between China and the U.S. moderated.
The long awaited ECB monetary policy meeting came with few surprises and Mario Draghi, its President, announced a package of stimulus measures which caused back-and-force movements in financial valuations.
On Friday, sovereign yields rose and European stocks edged up as investors digested the new round of ECB stimulus.