During a session with low trading volumes (markets were closed in the US), investors recorded modest gains, fuelled by positive sentiment data across Europe (the service PMI was revised up by 0.3 points to 58.3 in June, the highest level since July 2007).
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In the last session of the week, investors' sentiment improved and markets ended the day with positive results.
The new forward guidance of the ECB, a tilt more dovish, was received smoothly by financial markets in a session where investor sentiment continued to improve on the back of positive corporate results.
Volatility declined and global stock markets rebounded as the rout in Chinese equities eased and investors digested the outcome of the Fed's monetary policy meeting.
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.
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.
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.
Markets traded in a cautious mood in yesterday's session. Stocks were mixed across advanced and emerging economies while in FX markets the USD strengthened against the major currencies. In commodity markets, prices were little changed.
Investors traded in a cautious mood in the first session of the week. Volatility rose, U.S. equities declined moderately and European and EM stocks nudged up.
Financial markets ended the day with positive results, as better-than-expected Q3 corporate earnings and economic data (new jobless claims in the U.S. fell to 293k last week) outweighed worries about inflationary pressures.
In yesterday's session, investors traded with an optimistic tone amid positive corporate results in the U.S. and dovish comments by central bank officials. In particular, ECB Olli Rehn, reiterated that the current spike in inflation is mostly temporary, although some factors pushing up inflation might be more persistent than initially thought.
In yesterday's session, financial markets traded with an optimistic tone amid positive corporate earnings releases in the U.S. and across Europe. Investors remain concerned, though, about inflationary pressures as the Fed's Beige Book reported significant increases in prices and wages in a decelerating economy.
In yesterday's session, financial markets ended with mixed results, following the better-than-expected economic data releases in the U.S. (October retail sales and industrial production rose by 1.7% and 1.6 m-o-m, respectively) and comments from various Fed officials.
Inflation remained the key focus of investors on Thursday, following comments by Fed and IMF officials that the rebound in prices might be more broad based and "sticky".
In yesterday's session, investors traded with a risk-off mood amid rising concerns over the omicron variant, rising inflation in the euro area (headline 4.9% and core 2.6%) and hawkish comments by Fed members.
In yesterday's session, investors focused their attention to mounting inflationary pressures (US PPI rose by 0.8% mom in November, while consensus expected +0.5%) and the potential response from central banks.
Financial markets recorded a risk-on session, after the US Federal Reserve delivered a more hawkish strategy against the risk of elevated inflationary pressures.
In yesterday's session investors continued to trade with a risk-on mood but with more caution amid rising Covid-19 cases across advanced economies. In addition, some ECB members offered comments with a hawkish tone, opening the door even to a rate hike in 2022 if inflation were to increase further.
In yesterday's session, investors traded with a risk on mood and, in stock markets, took advantage of recent declines to “buy the dip”, particularly in the US technology sector.
Financial markets ended the day with mixed results, with investors weighting in a batch of positive earnings reports with rising inflation data and weak signals from the US labour market.