Financial Markets Daily Report

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In yesterday's session, caution returned to financial markets. Investors' concerns over the economic growth were fuelled by the European Commission Summer economic projections, which forecast a sharpest fall this year and a slower recovery, and Fed members' downbeat comments.

Investors started the week with optimism and a risk-on mood. Despite the increase in COVID-19 cases around the globe, optimism surged on the back of better-than-expected business sentiment indicators.

In the last session of the week, investors traded cautiously amid fears of new covid-19 cases and doubts on a united ECB response in case further stimulus is required. European stock indices edged lower while EM equities surged, led by Chinese equities. US financial markets were closed because of the Independence Day.

Stocks rallied in yesterday's session, supported by recovering economic data. In particular, U.S. nonfarm payrolls surged by 4.8 million in June –the largest increase on record, even though the unemployment rate still stood above 10% (11.1% in June down from 13.3% in May). Yet, U.S. sovereign yields nudged down and the USD strengthened.

Volatility nudged down in the first session of Q3 2020. U.S. stocks advanced moderately as economic indicators recovered (ISM manufacturing at 52.6 points in June, its first reading above the 50-threshold since early 2020). Elsewhere, stocks declined in Europe and gained in EM.
 

Markets were mixed in yesterday's session. U.S. stocks surged, while EM equities posted modest increases and European stocks declined moderately.

Investors started the week on a positive note. Volatility declined and stocks rose across Europe, the U.S. and Latin America.

Markets were mixed in the last session of the week as investors looked for direction.

Yesterday's session opened with the negative tone seen in the previous days driven by the increase in covid-19 cases around the globe.

In yesterday's session, financial markets experienced risk-off flows as investors were concerned about the spread of new covid-19 cases in the US and media reports suggesting that the White House might be willing to impose new tariffs on $3.1 billion of exports from Europe.

In the first session of the week, investors traded in a lower volatility environment and weighed, on the one hand, the increase in covid-19 cases around the globe and, on the other, the possibility of additional government stimulus. 

In the last session of the week investors traded cautiously amid doubts over the evolution of the pandemic in the US and as EU leaders ended their Friday meeting with no agreement on the EU recovery plan.