Equity markets have started the week in a very enthusiastic manner amid optimism that U.S. legislators are on the brink of passing the tax reform.
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International stock markets were mixed with stronger declines in Europe and slighter decreases in the U.S., suggesting investors consider the effect of the tax reform is sufficiently priced in.
Markets traded on a positive mood in yesterday's session. Optimism on the economic recovery sent commodities and advanced-economy stocks higher, and in FX markets the USD eased against the major currencies. Yet, EM equities and currencies were mixed.
In the last session of August, investors weighed the slowdown of some economic sentiment indicators (e.g.: U.S. Conference Board's consumer confidence at 113.8 from 125.1 in July and China's Composite PMI down to 48.9 in August from 52.4) against an upside surprise in the euro area inflation.
Stock markets advanced in the U.S. and experienced a generalized decline in Europe, while sovereign yields picked up both in the U.S. and the Euro Area.
U.S. stock markets rebounded while in Europe the tone was mixed. In sovereign bond markets, 10-year yields nudged down in the U.S. and edged up in the Euro Area.
As expected, the Governing Council of the ECB did not introduce changes in its monetary policy stance and maintained its pledge to move slowly in removing stimulus, repeating that interest rates are expected to remain at present levels until well past the end of net asset purchases.
Financial markets started the week without major turbulences and still digesting Powell's dovish comments from last week. In this sense, Cleveland Federal Reserve President Loretta Mester said yesterday that the inflation spike will be transitory and that the U.S. labor market is not yet at full employment.
U.S. stock markets ended their worst week in two years on a positive note, while European stocks also suffered losses in the last session of the week.
Yesterday stock markets registered small declines both in Europe and the U.S. In sovereign bonds markets, yields edged higher in the U.S. while they decreased slightly in Europe.
Global stock markets were mixed yesterday and investors continued to adopt a cautious stance as they are still evaluating the outlook for central bank policy normalization and the impact it could have on interest rates.
European stock markets registered strong declines on Friday while the U.S. Indices' late rally was muted by investor concern about the impact of American tariffs on the global economy.
Stock markets decreased slightly in the U.S. as investors are still concerned about the changes in the Trump administration.
In the last session of the week, stock markets advanced both in the U.S. and Europe, while in sovereign bond markets yields were roughly stable.
On Thursday, in the last session before the Easter holidays, stock markets posted gains both in the U.S. (S&P 500 +1.4%) and in Europe (Eurostoxx 50 +0.9%). Yesterday, European stock markets were still closed but U.S. markets opened back with losses (S&P 500 -2.2%).
Stock markets swung back and forth as they dropped in early trading and bounced back in the last part of the session.
Despite the release of better-than-expected economic data in Germany and in the UK, investors traded with a risk-off mood after Monday’s IMF downward growth revision and amid concerns that the virus outbreak in China could disrupt consumer spending.
Investors traded in a positive mood yesterday as the European stock market rose 0.6% on the back of good earnings reports and positive soft data. In Germany, the ZEW business expectations index rose to 71.2 in March from 61.8 in February, its highest level in months. Euro area periphery sovereign yields widened slightly.
Financial markets started the week with a low-volume session because of Martin Luther King holiday in the U.S.
During yesterday's meeting, the Federal Reserve sharply upgraded its forecasts for growth in the U.S. and signalled that interest rates would remain unchanged until at least 2024 and that it would continue to buy bonds at a pace of $120 billion per month until it made "substantial further progress" towards its goals.