Investor sentiment steadied in yesterday's session and markets halted a string of volatile sessions this week. U.S. stocks rebounded and European equities continued to advance. Earlier, Asian stocks had closed lower, dragged by the previous days' jump in volatility.
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Investors continued to trade with a risk-on mood on Wednesday, easing worries about rising inflation and shrugging off hawkish signals sent by some Fed officials throughout the week, including Fed Vice Chair for supervision Randal Quarles. Equity markets rose modestly, led by tech stocks, while volatility receded.
Wall Street's main indexes closed little changed as investors weighed inflation concerns and a fresh surge in so-called "meme stocks" : AMC jumped 97.44%. European equities closed at another record high amid hopes of a strong economic rebound that boosted cyclical stocks.
Investors traded with a positive mood on Wednesday, easing concerns about a rapid withdrawal of monetary accommodation by the major central banks.
Last Friday, investors' sentiment worsened amid rising COVID-19 cases, now more contagious with the Delta variant.
Investors traded more cautiously in yesterday's session as several regional Fed presidents (Bullard, George, Kaplan) signaled that they favor tapering asset purchases soon. Volatility rose and stock markets declined across advanced and emerging economies.
Financial markets ended the day with mixed results, as investors balanced fears about lingering supply constraints and pandemic-related risks with expectations that monetary policy will remain accommodative.
Investors ended the week in a mixed mood. Volatility jumped and stock markets declined across many advanced economies. In contrast, EM equities posted moderate gains.
Markets started the week on a moderately positive note. In a session with no major economic releases, volatility declined, stocks rose moderately across advanced economies, and EM equities were mixed.
Markets were mixed on Thursday. EM and U.S. stocks ended lower while European equities rebounded from a seven-week low, led by the travel and leisure sector.
Financial markets started the week with a risk-off session fuelled by concerns that Evergrande, a giant property developer in China, is facing a liquidity crisis and might not be able to service its debt repayments.
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