In yesterday's session, investor sentiment improved on the back of positive corporate earnings releases and the expectation of continuing support from the fiscal and monetary policies.
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In yesterday's session, investor sentiment remained cautious amid volatile inflation data in the US (core CPI inflation +1.4% in January vs +1.6% in December).
In yesterday's session investors traded amid few relevant economic news or data releases. Stock indices edged down in most advanced economies after a rally that lasted a week but remain positive in the MTD.
Investors started the week on a positive note. Stocks rose across advanced and emerging economies on the back of optimism over the economic outlook. Positive market sentiment also led to higher commodity prices, and Brent oil prices nudged past $60.
Investors continued trading in a risk-on mood yesterday as the vaccination process continues, and, symbolically, the number of people vaccinated across the world reaches the number of COVID-19 cases.
Volatility increased in the first session of the week as investors pondered over worsening pandemic dynamics. Stocks were mixed, advancing moderately in the U.S. and in emerging Asia while retreating across euro area core and peripheral countries.
Investors traded in a mixed mood in yesterday's session, amid higher expectations of a fiscal push in the U.S., tighter mobility restrictions and political uncertainty in Italy.
Financial markets ended the week with a downbeat tone as investors considered Joe Biden's $1.9 trillion relief plan and the negative evolution of the pandemic.
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 yesterday's session volatility declined as investors celebrated the speech of Janet Yellen. In her confirmation hearing to become the new US Treasury Secretary, Yellen urged lawmakers to "act big" on the next fiscal package and focus initially on public health and widespread vaccinations. Today Joe Biden takes office as US president.
In yesterday's session investors traded cautiously amid worsening pandemic numbers across the globe and an ECB monetary policy meeting with no surprises.
In yesterday's session, investors traded with optimism as they expect US federal spending to raise economic growth in the coming quarters.
Markets ended the week on a cautious note as investors worried over deteriorating pandemic dynamics (compounded by news suggesting that the British strain of the coronavirus could be deadlier) and euro area indicators pointed at a decline in activity in January (the area-wide flash composite PMI nudged down to 47.5 points).
Stock markets rebounded across advanced economies and implied volatility eased as risk sentiment improved.
Investors traded in a risk-on mood yesterday amid better-than-expected GDP data in the eurozone (-0.7% qoq in Q4) and a continuation of stimulus negotiations in the US.
An improving health situation in the US combined with the prospect of a bipartisan stimulus package have led to a 1.6% jump in the S&P 500 on Monday, its largest daily gain in two months.
Stocks slid in Europe amid rising concerns over delays to the vaccine rollout in the continent and the economic impact of a new strain of COVID-19. A vaccine produced by AstraZeneca and Oxford University was approved by the EU's regulator on Friday but difficulties in delivering shipments to the bloc are leading to rising tensions.
European sovereign yields edged lower in yesterday's trading session following a speech by ECB chief Christine Lagarde in which she signalled further monetary easing. In her speech, Lagarde emphasised the importance of the duration, and not only the size, of monetary accomodation, and identified PEPP and TLTROs as the main crisis tools.
Markets suffered a risk-off session yesterday. Volatility jumped to levels not seen since autumn and stocks sold off across advanced and emerging economies, while the USD strengthened and commodity prices declined.
Investors traded cautiously in yesterday's session. The IMF updated its global economic forecasts – raising world GDP growth in 2021 to 5.5% but lowering the euro area's 2021 projections to 4.2% (-1.0pp). Spain's 2021 GDP growth forecast was lowered to 5.9% (-1.3pp).