Financial Markets Daily Report 19 January 2021
Financial markets started the week with a mixed tone in a session with the US markets closed for Martin Luther King, Jr. Day. Investors traded cautiously as they weighed rising COVID number across the globe, Joe Biden's stimulus plan and Q4 GDP numbers in China. (+2.6 qoq, +6.5% yoy, leaving 2020’s annual growth at 2.3%).
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- Financial markets started the week with a mixed tone in a session with the US markets closed for Martin Luther King, Jr. Day. Investors traded cautiously as they weighed rising COVID number across the globe, Joe Biden's stimulus plan and Q4 GDP numbers in China. (+2.6 qoq, +6.5% yoy, leaving 2020’s annual growth at 2.3%).
- In this context, stock indices rose mildly in the euro area and with more intensity in China. In FX markets, the US dollar weakened against most advanced and emerging economies' currencies.
- In fixed-income markets, yields on core and peripheral euro area sovereign bonds edged up but risk premiums remained stable as Italy’s PM Conte passed Monday’s confidence vote in the Chamber of Deputies with an absolute majority (today he will face a confidence vote in the Senate, where the government has a smaller support).
- In oil markets, the price of the barrel of Brent fluctuated below $55.