Financial Markets Daily Report 27 January 2021
Investors traded cautiously in yesterday's session. The IMF updated its global economic forecasts – raising world GDP growth in 2021 to 5.5% but lowering the euro area's 2021 projections to 4.2% (-1.0pp). Spain's 2021 GDP growth forecast was lowered to 5.9% (-1.3pp).
Content available in
- Investors traded cautiously in yesterday's session. The IMF updated its global economic forecasts – raising world GDP growth in 2021 to 5.5% but lowering the euro area's 2021 projections to 4.2% (-1.0pp). Spain's 2021 GDP growth forecast was lowered to 5.9% (-1.3pp).
- In stock markets, European equities recovered some ground from Monday's losses while U.S. stocks searched for direction ahead of today's Fed monetary policy meeting (see what to expect here).
- In fixed-income markets, core sovereign yields were little changed. Italy's risk premium declined below 120pb during a session in which PM Conte handed his resignation to President Mattarella – seeking a fresh chance to pull together a new administration (possibly led again by Conte).
- In FX markets the USD weakened moderately against the major AE and EM currencies.