Financial Markets Daily Report 05 maig 2021
Global stocks tumbled on Tuesday, with the tech sector in Europe suffering its biggest drop since October, mirroring a selloff on the Nasdaq (-1.9%, sharpest fall since March). The decline was driven by comments from U.S. Treasury Secretary Janet Yellen warning that interest rates may need to rise to prevent the economy from overheating.
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- Global stocks tumbled on Tuesday, with the tech sector in Europe suffering its biggest drop since October, mirroring a selloff on the Nasdaq (-1.9%, sharpest fall since March). The decline was driven by comments from U.S. Treasury Secretary Janet Yellen warning that interest rates may need to rise to prevent the economy from overheating.
- Germany’s DAX Index was the worst performer among Europe’s major benchmarks. Emerging-market stocks and currencies declined, as increased demand for safe havens drove up the dollar. US treasuries yields fell modestly.
- Among the S&P 500 companies that have reported, more than 86% have surpassed earnings expectations. The optimism continues to drive a modest increase in commodity prices (the Brent rose by 2% on Tuesday).
- For today, the key data releases are the services PMI for Europe and the service ISM and the ADP employment survey for the US. In addition, the central bank of Brazil will announce its policy decisions (markets expect a 75 bp rate hike).