Financial Markets Daily Report 24 August 2020
In August, investors have been trading on a cautiously positive note –weighing the recovery in activity indicators against ongoing and renewed coronavirus outbreaks across advanced and emerging economies. In this context, somewhat lower risk aversion has eased pressures on safe-haven assets and favored the performance of risky assets.
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- In August, investors have been trading on a cautiously positive note –weighing the recovery in activity indicators against ongoing and renewed coronavirus outbreaks across advanced and emerging economies. In this context, somewhat lower risk aversion has eased pressures on safe-haven assets and favored the performance of risky assets.
- Since July 31st, volatility has declined further and global stock markets have trended up (with the clear exception of Latin America). In the U.S., the S&P 500 recovered pre-coronavirus levels and reached a new historical high last week.
- In FX markets, lower risk aversion has led to a moderate depreciation of the USD against the major advanced and emerging currencies. Commodities have also performed positively and Brent oil prices have fluctuated around $44.
- In fixed-income markets, U.S. sovereign yields have edged higher, while in the euro area core yields have remained roughly stable and peripheral spreads continued to narrow.