Financial Markets Daily Report 16 July 2020
Positive developments around a potential COVID-19 vaccine fueled a risk-on mood in yesterday's session. Stocks rose across advanced and emerging economies and, in the U.S., shares of Moderna - a company working on a vaccine - surged close to 7% after a small-scale study showed its experimental vaccine produced high levels of antibodies.
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- Positive developments around a potential COVID-19 vaccine fueled a risk-on mood in yesterday's session. Stocks rose across advanced and emerging economies and, in the U.S., shares of Moderna –a company working on a vaccine– surged close to 7% after a small-scale study showed its experimental vaccine produced high levels of antibodies.
- Also, U.S. and European sovereign yields nudged up and the USD weakened on the back of greater risk appetite.
- In oil markets, the price of the barrel of Brent rose towards $44, further supported by a decline in U.S. crude inventories last week. Yet, inventories remain 17% above the 5-year average. Separately, OPEC+ countries announced they will ease their production cuts to 7.7 million barrels a day in August (as planned in their June agreement).
- Data released this morning showed that China's activity rebounded strongly in Q2 (GDP growth stood at +3.2% yoy). Today the focus will be on the ECB's monetary policy meeting (see what to expect here).