Financial Markets Daily Report 23 March 2021
In yesterday's session, volatility declined, US stock indices rose led by gains in the tech sector and euro area equities were mixed.
- In yesterday's session, volatility declined, US stock indices rose led by gains in the tech sector and euro area equities were mixed.
- The announcement of a new lockdown in Germany during Easter weakened touristic related firms while the depreciation of the Turkish lira (of more than 7%) had a bigger impact on firms exposed to the region.
- On monetary policy, the ECB increased the pace of net asset purchases as announced in the previous meeting. Last week, net asset purchases within the PEPP stood at €21.1bn (€14bn in the previous week). In this context, euro area sovereign yields edged down and peripheral spreads ticked up.
- In FX markets, the US dollar weakened against most advanced economies' currencies, the Swiss franc strengthened the most, and the euro fluctuated above $1.19.