Concerns over the evolution of the pandemic and, especially, the Delta variant worsened investors' sentiment in the last session of June. In addition, IMF chief economist Gita Gopinath said that the access to vaccines is unequal across countries and is causing a "diverging recovery".
Búsqueda en Caixabank Research
Resultados de la búsqueda
2061 resultados para Roles of education in the development process
Financial markets started the week with a risk-on session, as fears about the risk that the spread of the omicron variant could lead to more severe restrictions eased. In addition, China's central bank said it would cut the amount of cash that banks must hold in reserve, releasing 1.2 trillion yuan in long-term liquidity.
European equities performed well on Thursday after the Federal Reserve raised its growth forecast for the US, and the Eurostoxx50 rose 0.5%. Banks and automakers led the gains, as they are favored by rising market interest rates.
In yesterday's session, investors traded cautiously ahead of today's U.S. CPI data for May (Bloomberg consensus expects +4.7% yoy) and the ECB monetary policy meeting (the focus will be on the updated macro projections and on the pace of net asset purchases under the PEPP, which will probably remain unchanged at 80bn per month).
A larger-than-expected decline in US inflation in May, from 4.9% yoy to 4.0%, increased the odds investors attach to a pause in the Federal Reserve interest rate hikes at today’s meeting. Nevertheless, core inflation declined by less than expected, from 5.5% yoy to 5.3%, pushing the Fed to, at the very least, maintain a hawkish tone.
International investors remained cautious with no further progress in equity markets and stability for the sovereign yields after the geopolitical tensions intensified again at the beginning of the week.
Investors traded with a risk-on mode during the first session of the year, extending recent gains while shrugging off a further deterioration in the number of COVID daily infections across the world.
Small gains in most of the stock markets with the exception of the Spanish stock market that registered loses due to the tensions regarding the Catalan question.
Negotiations to raise the US debt ceiling progressed over the course of Thursday, with both the Government and the opposition party suggesting talks were in a better place, though not finalised yet. Should a deal be reached soon, Parliament would have to approve it before June 1, the deadline stated by Treasury Secretary to run out of cash.
Tensions around the US debt ceiling negotiations continued weighting on investors’ sentiment. Even though the opposition leader, McCarthy, signaled optimism about a deal after the latest round of talks, rating agency Fitch Ratings warned the nation’s AAA rating may be downgraded due to the political standoff.
Investors continued to err on the side of caution on Wednesday, taking position ahead of the release of the Q1 GDP flash estimates for the US today and across the eurozone tomorrow.
In yesterday's session, stock volatility declined and investors traded with cautious optimism. Federal Reserve officials reiterated their intention to keep monetary policy unchanged until the economic recovery has been fully completed. Then, the exit of the stimulus would be very gradual and with great transparency.
Markets were mixed in the first session of the week. Stocks advanced in Asia and Europe but retreated in the U.S, where financials weighed on the main benchmarks as investors assessed potential losses from their exposure to Archegos Capital Management, a hedge fund that had failed to meet margin calls.
In the last trading session before Christmas, stock markets declined and long-term sovereign yields remained stable (with the exception of Portugal, whose risk premium undid part of the week's strong decline as investors are still calibrating the implications of the improved sovereign rating)
Global stock markets were mixed as investors gauge the implications of the latest changes in the Trump administration, especially after the declarations of the new White House economic adviser Larry Kudlow that signaled support for a strong dollar and took a tough line on China.
Most of the developed stock markets kept registering small gains yesterday while yields on sovereign bonds picked up. In the U.S., the yield on the 10-year Treasury increased by 7 basis points and reached 2.55% for the first time in more than 9 months.
In yesterday’s session, US debt ceiling negotiations continued to center the stage in financial markets as President Joe Biden and Republican speaker of the House Kevin McCarthy keep pushing for a deal to avoid a default on sovereign bonds. Biden specified that negotiations are on the fiscal budget, not on whether the US will pay or not its debt.
Investors traded with a positive tone in yesterday's session as March PMI data surprised on the upside in most regions, particularly in the euro area (Composite Index 52.5 vs 48.8 in February). The advance was more robust in the manufacturing sector, although the services index also increased.
In yesterday’s session, the focus was still on monetary policy decisions, as the ECB decided to raise the official interest rates by 25 bp (depo and refi rate at 3.25% and 3.75%, respectively). Despite lowering the pace of rate increases, Lagarde clearly signaled that the ECB cannot pause rate hikes yet as inflation is still too much elevated.
In the last session of the week, investors’ expectations on additional interest rate hikes by the US Federal Reserve were seen as more probable. That, together with debt ceiling concerns and an increase of inflation expectations seen in the University of Michigan survey, pushed US Treasury yields higher.