Financial Markets Daily Report 18 January 2021
Financial markets ended the week with a downbeat tone as investors considered Joe Biden's $1.9 trillion relief plan and the negative evolution of the pandemic.
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- Financial markets ended the week with a downbeat tone as investors considered Joe Biden's $1.9 trillion relief plan and the negative evolution of the pandemic.
- In this context, volatility rose, stock indices declined across advanced and emerging economies and yields on US Treasuries declined. In the euro area, core sovereign yields nudged up while peripheral spreads narrowed.
- In FX markets, the US dollar strengthened against most currencies while, in oil markets, the price of the barrel of Brent declined towards $55.
- This week the focus will be on the ECB monetary policy meeting (Thu., see our take here), January's flash PMIs for the main advanced economies (Fri.) and the appearance of Italy's PM Giuseppe Conte in the lower house and the senate to face a confidence vote. Today US markets will be closed for Martin Luther King, Jr. Day.