Financial Markets Daily Report14 desembre 2020
In the last session of the week, investor sentiment worsened as uncertainty over the fiscal stimulus in the US rose and the EU-UK trade negotiations seemed to be heading towards a no-deal brexit.
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- In the last session of the week, investor sentiment worsened as uncertainty over the fiscal stimulus in the US rose and the EU-UK trade negotiations seemed to be heading towards a no-deal brexit.
- In this context, stock indices declined across the board and most of them closed the week in the red territory. In fixed-income markets, yields on euro area sovereign bonds edged down while peripheral spreads rose mildly.
- In FX markets, the sterling pound weakened after British PM Boris Johnson said that reaching a trade deal is not very likely. Nevertheless, talks continued during the weekend and Ursula Von der Leyen and Boris Johnson agreed to go the "extra mile" and give negotiators another chance to close a deal.
- This week the focus will be on the Federal Reserve monetary policy meeting (Wed.) in which we expect no major changes, although some details of the assets purchases might be recalibrated.