Financial Markets Daily Report 01 February 2021
Stocks slid in Europe amid rising concerns over delays to the vaccine rollout in the continent and the economic impact of a new strain of COVID-19. A vaccine produced by AstraZeneca and Oxford University was approved by the EU's regulator on Friday but difficulties in delivering shipments to the bloc are leading to rising tensions.
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- Stocks slid in Europe amid rising concerns over delays to the vaccine rollout in the continent and the economic impact of a new strain of COVID-19. A vaccine produced by AstraZeneca and Oxford University was approved by the EU's regulator on Friday but difficulties in delivering shipments to the bloc are leading to rising tensions.
- Data released on Friday showed that GDP contracted by 11% in Spain (see our take here), by 8.3% in France, a better than expected fall in activity, and by 5.3% in Germany. Eurostoxx50 was down 2.1% and ended the week at -3.4%, while sovereign bond yields edged up, with Spanish 10-year yields rising 3 basis points on the day.
- In the US, volatility increased sharply as a battle between retail traders, brokers and hedge-funds over a handful of stocks intensified. The S&P 500 was down 1.9% on Friday, while 10-year Treasury yields rose 3 basis points.
- In oil markets, the price of the barrel of Brent was up 0.6% and reached $55.9.