Financial Markets Daily Report 22 September 2020
In yesterday's session, investors traded with a risk-off mood amid concerns of growing COVID cases around the globe. Powell's speech in Congress in which he stated that the US economy is improving failed to provide much relief to investors, as he also said that there is a long way to go before a full recovery.
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- In yesterday’s session, investors traded with a risk-off mood amid concerns of growing COVID cases around the globe. Powell´s speech in Congress in which he stated that the US economy is improving failed to provide much relief to investors, as he also said that there is a long way to go before a full recovery.
- In this context, stock indices declined in advanced and emerging economies, while safe-haven currencies (such as the US dollar, the Japanese Yen or the Swiss Franc) strengthened. The euro fluctuated below $1.18.
- In fixed-income markets, yields on core euro area sovereign bonds edged down (the German Bund yielded -0.53%, a level not seen since early August) and peripheral risk premiums rose mildly.
- In oil markets, the price of the barrel of Brent fell by almost $2 towards $41 amid concerns of weaker-than-expected demand.