Financial Markets Daily Report

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In yesterday's session, financial markets were mixed as traders digested worse-than-expected corporate earnings releases.

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.

Investors ended the week in a cautious mood as rising U.S.-China tensions overshadowed a rebound in economic sentiment indicators.

Financial markets performed poorly in yesterday's session amid worse-than-expected US labor market data (initial unemployment claims rose last week for the first time since late March) and rising tensions between the US and China.

Yesterday investors traded on a risk-on mood on the back of an historical agreement in the EU. The €750bn stimulus plan agreed will consist of €390bn in grants and €360bn in loans.

In the last session of the week, investors traded cautiously as they pondered over an uncertain economic outlook. Stocks rose moderately in advanced economies while exhibiting a better performance in emerging economies. In FX markets, the USD weakened against most AE currencies.

Investors traded more cautiously in yesterday's session as increasing coronavirus infections weighed on risk sentiment.

Positive developments around a potential COVID-19 vaccine fueled a risk-on mood in yesterday's session. Stocks rose across advanced and emerging economies and, in the U.S., shares of Moderna - a company working on a vaccine - surged close to 7% after a small-scale study showed its experimental vaccine produced high levels of antibodies.

Markets continued to exhibit a mixed performance as investors weighed data releases and increasing COVID-19 infections. European stocks and sovereign yields declined after euro area industrial production had posted a lower-than-expected rebound in May (+12.4% mom and -20.9% yoy). Yet, in FX markets the euro rose towards $1.14.

Global markets started the week with a mixed session. In Europe, stocks rose across the board and sovereign yields advanced as investors eyed negotiations over the EU stimulus plan ahead of the European Council.