Financial Markets Daily Report 06 octubre 2020
Investor traded in a risk-on mood at the start of the week, leading to broad-based gains in stock markets. Gains were stronger in the U.S., further supported by higher hopes over a new fiscal package to stimulate the economy and amid better-than-expected sentiment indicators (the ISM nonmanufacturing rose to 57.8 points in September).
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- Investor traded in a risk-on mood at the start of the week, leading to broad-based gains in stock markets. Gains were stronger in the U.S., further supported by higher hopes over a new fiscal package to stimulate the economy and amid better-than-expected sentiment indicators (the ISM nonmanufacturing rose to 57.8 points in September).
- Amid greater risk appetite, safe-haven currencies such as the USD and the JPY weakened and commodity prices rose across the board (Brent oil prices jumped above $40). In fixed-income markets, yields on U.S. and German sovereign bonds edged higher while euro area peripheral spreads were little changed.
- In the euro area, final September PMIs were revised up but remained weaker than in August in most countries –suggesting that the recovery cooled down. The composite index stood at 50.4 points in the Eurozone, 54.7 in Germany, 48.5 in France, 50.4 in Italy and 44.3 in Spain. The services index posted weaker figures everywhere.