Financial Markets Daily Report 19 February 2021
Markets displayed a lower risk appetite in yesterday's session – as investors pondered the impact of rising interest rates on equity markets. Volatility rose and stocks dropped across advanced and emerging economies.
Content available in
- Markets displayed a lower risk appetite in yesterday's session – as investors pondered the impact of rising interest rates on equity markets. Volatility rose and stocks dropped across advanced and emerging economies.
- Sovereign yield curves continued to steepen across the U.S. and Europe. Euro area peripheral spreads widened even as the accounts of the ECB's January meeting showed unanimous support for the accommodative policy stance and officials warned that "a temporary increase in inflation should not be mistaken for a sustained increase".
- In commodity markets, Brent oil prices closed lower despite a drop in U.S. crude inventories. According to the U.S. Department of Energy's weekly report, inventories decreased by 7.3 million barrels last week and they currently stand at the five year average for this time of the year.
- Today the focus will be on the release of February flash economic sentiment indicators (PMIs) in Europe and the U.S.