Financial Markets Daily Report 11 December 2020
Investors continued to trade cautiously in yesterday's session as EU policymakers relaunched Europe's economic stimulus and amid signals that U.S. activity is losing steam (initial unemployment claims jumped to a 3-month high). Stock markets were mixed, the USD weakened and sovereign yields were little changed.
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- Investors continued to trade cautiously in yesterday's session as EU policymakers relaunched Europe's economic stimulus and amid signals that U.S. activity is losing steam (initial unemployment claims jumped to a 3-month high). Stock markets were mixed, the USD weakened and sovereign yields were little changed.
- The ECB boosted its Pandemic Emergency Purchase Programme by €500bn to a total of €1.85trn. The envelope need not be spent in full, but net purchases will continue until March 2022. The ECB announced 3 more TLTRO operations in 2021, extended their favorable conditions until June 2022 and said it will launch 4 PELTRO operations in 2021.
- Also, EU leaders reached a deal to end the blockade of the EU's €1.1trn 7-year budget and the €750bn NGEU package.
- The GBP weakened as PM Boris Johnson warned that there is a "strong possibility" the UK and the EU won't agree on a post-brexit trade deal. The European Commission issued a batch of contingency measures.