Financial Markets Daily Report 13 January 2021
Tuesday's session was mixed, as investors weighed worries of further restrictions to stem the spread of the virus in Europe against prospects of additional fiscal stimulus in the United States.
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- Tuesday's session was mixed, as investors weighed worries of further restrictions to stem the spread of the virus in Europe against prospects of additional fiscal stimulus in the United States.
- In Europe, stocks nudged down as the COVID variant found in the U.K. has already been detected in a number of European countries and the French prime minister refused to rule out the possibility of a third national lockdown.
- Meanwhile, in Italy, a row over the country's recovery plan forced the government to table a new proposal to avoid a political crisis. The country's 10-year sovereign spread rose 6 basis points on the news.
- In the U.S., stock markets closed barely higher. In fixed-income markets, the yield on 10-year Treasuries searched for direction as investors assessed the likelihood of additional fiscal stimulus under the upcoming Biden presidency: while at one point it had reached a postpandemic high, it closed falling 2 basis points on the day.