Financial Markets Daily Report

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Investor sentiment improved in the last session of the week despite the release of April's U.S. employment report, which showed the largest job's loss since the Great Depression.

As markets continue to struggle for direction, yesterday volatility declined and European and U.S. stock markets rose on the back of some positive earnings reports and as investors looked past weak economic releases.

Investors traded cautiously in yesterday's session. Uneasiness around U.S.-China relations and the release of economic indicators and forecasts affected by the COVID-19 sent global stocks lower while safe-haven currencies rose.

Germany's Constitutional Court cast a shadow over the ECB's asset purchase programs.

Risk aversion continued to increase at the start of the week.

Markets ended the week in a risk-off mood.

In a session in which the focus was expected to be the FOMC meeting and the Q1 2020 US GDP release, investors shifted their attention to the expectations of an effective COVID-19 treatment.

In yesterday's session, investor sentiment improved as some European countries and U.S. states moved toward gradually reopening their economies.

In the first session of the week, investor sentiment improved as covid-19 deaths slowed in Europe and some major economies moved shyly toward reopening. 

In the last session of the week, investors traded cautiously in Europe amid dramatic economic sentiment data in Germany (Ifo sentiment fell to the lowest recorded level) and the absence of a clear EU-wide proposal to fund the recovery in Thursday’s European Council meeting.

Volatility nudged down and most global stock indices advanced, while oil prices rose as OPEC+ producers said they would accelerate planned production cuts.

A rebound in oil prices drove volatility down and fostered generalized gains across stock markets.