Financial Markets Daily Report18 maig 2021
Rising COVID-19 cases in some regions and inflation concerns, particularly in the US, were yesterday's main drivers in financial markets. Fed Governor Richard Clarida, though, eased fears of an early monetary policy tightening as he said that April's disappointing employment report showed that further substantial progress has not been made yet.
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- Rising COVID-19 cases in some regions and inflation concerns, particularly in the US, were yesterday's main drivers in financial markets. Fed Governor Richard Clarida, though, eased fears of an early monetary policy tightening as he said that April's disappointing employment report showed that further substantial progress has not been made yet.
- In this context, sovereign yields rose in the US and in the euro area, peripheral spreads widened and the euro strengthened modestly. In stock markets, volatility measured with the VIX index rose and equities declined slightly in the US and in core euro area countries. In the periphery, stock indices edged higher.
- In commodity markets, the price of the barrel of Brent edged higher and traded close to $70, a level not seen since May 2019. Despite the increase in COVID-19 cases, mainly in Asia, the reactivation of the economy in Europe and in the US improved demand expectations for oil.