Stock indices in advanced economies tumbled as the Donald Trump administration put the Chinese telecom Huawei in the blacklist that could forbid it from doing business with U.S. companies.
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Investor sentiment improved mildly as news coming from the trade tensions between the U.S. and China were slightly conciliatory.
In yesterday's session, investors focused on brexit news, the release of the last Fed meeting minutes and trade tensions between the U.S. and China.
In yesterday's session a risk-off mood dominated investor sentiment. Stock indices declined across the globe and the price of safe assets (such as U.S. Treasuries, Japanese yen, Swiss franc and gold) rose.
Markets closed a volatile week on a relatively quiet note. Stocks rose moderately across advanced and emerging economies and U.S. and German sovereign yields were stable around their year-lows.
With U.S. markets closed for the Memorial Day holiday, European stocks advanced moderately at the start of the week as investors digested the results of the weekend's European Parliament election.
Escalating tensions between the U.S. and China led to higher financial volatility and a shift from risky assets to safe bonds in yesterday's session.
U.S.-China trade tensions (most recently, China's threat to restrict exports of rare earths, as pointed in yesterday's comment).
Investors traded in a mixed mood in yesterday's session.
Driven mainly by the trade tensions of the U.S. with China and, more recently, Mexico, stock indices in advanced economies declined, the price of gold rose and the Japanese Yen appreciated, in a canonical example of a risk-off session.
In yesterday's session, investor sentiment improved slightly from the risk-off mood that dominated last week.
Investors welcomed Fed Chairman Jerome Powell comments saying that the Federal Reserve is monitoring the possible implications of trade tensions and that it "will act as appropriate to sustain the expansion".
Financial markets' tone improved for the second day in a row on the back of previous Fed comments saying that it would support the economy in case the scenario worsens, mixed economic data releases and brighter investor expectations on trade tensions between Mexico and the U.S.
In yesterday session, global financial markets were driven by the dovish communication from the ECB and the developments in the negotiations between the U.S. and Mexico.
Global markets started the week on a positive note after U.S. President Trump suspended plans for tariffs on Mexico.
Markets underwent a relatively quiet session as they paused to assess the scenario.
Risk-off sentiment picked up in yesterday's session as sources talked down expectations on a successful Trump-Xi meeting in the G20 summit. Stocks declined across advanced and emerging economies, driven by technology and commodities shares, and yields on U.S. and German sovereign bonds nudged down.
Markets traded in a cautious mood in yesterday's session and advanced-economy stocks advanced moderately.
Investor sentiment remained moderately optimistic in yesterday's session despite the evolution of the pandemic.
Investors started the week with fresh optimism as the EU and the UK are set to continue negotiating to reach a deal before the transition period ends by December 31st.