Financial Markets Daily Report

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Global stocks were mixed and the focus in yesterday's session was on political developments in Europe.

Financial markets were mixed in yesterday's session.

Markets started the week on a constructive note as investors found support on positive geopolitical gestures.

Markets are suffering a turbulent summer.

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%).

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.

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.

Escalating trade tensions between the US and China worsened investor sentiment and motivated safe-haven flows in the last session of the week.

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.

Yesterday, Fed's 25 bp interest rate cut and the economic releases in Europe took center stage.

Stock markets decreased across the globe as investors perceived that trade talks between the US and China made very little progress.

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.