Financial Markets Daily Report 21 January 2021
In yesterday's session, investors traded with optimism as they expect US federal spending to raise economic growth in the coming quarters.
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- In yesterday's session, investors traded with optimism as they expect US federal spending to raise economic growth in the coming quarters. Joe Biden was sworn as President of the US and already issued some executive orders and announced that the US will rejoin the Paris Agreement on climate change.
- In this context, most stock indices across the globe rose and the S&P 500 reached a new historical high. In fixed-income markets, yields on core euro area sovereign bonds and US Treasuries were broadly unchanged while peripheral spreads widened. The euro fluctuated above $1.21.
- Today the Bank of Japan kept its monetary policy unchanged (official interest rate at -0.1%) and forecasts the economy to recover faster than previously expected. Later today, Christine Lagarde will hold the press conference following the Governing Council meeting of the ECB (see here what we expect).