Markets started the new year with a mixed tone as U.S. stocks rebounded modestly but European and EM equities declined moderately.
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Markets were driven by opposing signals about trade tensions in yesterday's session. European stocks were mixed, EM equities closed flat and U.S. stocks rose in a late-session rally.
In the first session of the week, euro area stock indices edged down amid concerns of lower global economic growth in the following quarters.
In a session where the inflow of macroeconomic and sentiment data was abundant in the U.S. and in the euro area, investors read it, overall, in the downside.
Advanced-economy stocks rose across the board as investors found support on positive indicators both in the U.S. (a solid +0.8% mom increase in capital goods orders in January and muted price pressures according to the producer price index, which rose +0.1% mom in February) and the Eurozone (industrial production +1.4% mom in January).
European stocks rose across the board as investors started the session in a positive mood.
After a strong start of the week, financial markets steadied in yesterday's session. European stocks advanced moderately on the back of carmakers while U.S. stocks finished with small gains after being lower for most of the session.
Markets exhibited a positive performance after the release of better-than-expected sentiment indicators in the euro area.
Markets started the week in a moderately positive note and sentiment pushed European stocks mildly upwards.
Europeanand Asian stocks advanced on the back of positive growth figures in China (see our assessment here) while U.S. stocks closed with a modest decline due to the release of mixed earnings results.
As financial markets were closed in most euro area countries, yesterday's focus was in the U.S., where the main equity indices ticked up in the lowest trading session since November.
Disappointing economic sentiment data in Germany (April's Ifo sentiment was 99.2, from 99.6 in March) led to a downbeat mood in euro area financial markets.
Investors traded cautiously in the last session of the week and stock indices rose mildly in most euro area trading floors and in the US (where the S&P 500 reached a new record high).
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.
Yesterday, Fed's 25 bp interest rate cut and the economic releases in Europe took center stage.
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%).