Markets tumbled amid concerns that the coronavirus could spread more widely and take a larger toll on economic activity outside China.
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Concerns about the spread and the economic impact of the coronavirus rattled markets for a second day in a row (following a rapid increase in cases in countries other than China).
Concerns over the spread of the coronavirus outside China rattled markets again.
Investors traded cautiously in yesterday's session. Uneasiness around U.S.-China relations and the release of economic indicators and forecasts affected by the COVID-19 sent global stocks lower while safe-haven currencies rose.
In yesterday's session, investor sentiment worsened amid weak economic data releases and mounting trade tensions between the US and China.
Investors traded yesterday with a risk-on mood, despite the continuing tensions between China and the US, fueled by the gradual reopening of economies and amid optimism on the economic recovery.
Markets started the week on a positive note as recovering activity indicators for May offset concerns over renewed U.S.-China tensions.
Investors traded more cautiously as new covid-19 infections and containment measures in China weighed on sentiment.
Financial markets performed poorly in yesterday's session amid worse-than-expected US labor market data (initial unemployment claims rose last week for the first time since late March) and rising tensions between the US and China.
Investors ended the week in a cautious mood as rising U.S.-China tensions overshadowed a rebound in economic sentiment indicators.
In yesterday’s session, investors’ sentiment worsened following concerns of overvaluations in some risky assets and mixed economic data releases. In particular, August Composite PMIs came out weaker-than-expected in most euro area countries (Spain, Italy and France) and surprised positively in Germany, the US and China.
Economic indicators favored a greater risk appetite in yesterday's session. China's industrial output rose +5.6% yoy in August while retail sales grew +0.5% and surpassed 2019 levels for the first time since the COVID-19 outbreak. Also, German investor sentiment continued to improve in September according to the ZEW index.
Volatility declined and stock markets advanced moderately in a session dominated by news of fresh extensions to coronavirus lockdowns in Europe and China.
Financial markets started the week with a mixed tone in a session with the US markets closed for Martin Luther King, Jr. Day. Investors traded cautiously as they weighed rising COVID number across the globe, Joe Biden's stimulus plan and Q4 GDP numbers in China. (+2.6 qoq, +6.5% yoy, leaving 2020’s annual growth at 2.3%).
In the first session of the week, investors traded with a positive and risk-on mood. The release of improving manufacturing PMI data in most countries (with the exception of China) and expectations that the vaccination campaign will be effective contributed to the optimism in financial markets.
Investors closed the week with an optimistic tone. Positive corporate earnings releases and Q1 activity data in China (GDP rose by 0.6% qoq and 18.3% yoy, due to base effects) contributed to the improvement in sentiment.
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.
Yesterday, investors continued to trade in a cautious mood. Asian stocks dropped after weak retail sales and industrial production data in China. In advanced economies, European equities declined while U.S. stocks rose on the back of greater optimism on the U.S. economic outlook.
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.
Markets ended the week in a mixed mood as investors pondered over the Fed's plans for stimuli withdrawal, risks from China's Evergrande and the announcement that Chinese authorities will ban all transactions and mining related to cryptocurrencies. Global stocks declined or closed flat while the USD rose against most AE and EM currencies.