Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Financial markets were mixed during yesterday's session. In the US, sovereign bond yields decreased, reaching a three-week low as investors gained confidence the US Administration is searching for a tariff de-escalation through trade deals. In the euro area, sovereign yields increased, despite ECB officials warning uncertainty due to a trade war will bring lower growth.
Investors' risk appetite rebounded slightly last week, a trend that largely continued into Friday's session. In the eurozone, government bond yields rose slightly, even though ECB's Holzmann, who had been advocating for a pause in rate cuts, acknowledged the disinflationary impact of tariffs and said the ECB's next rate decisions were "completely open".
In yesterday’s session, global financial markets registered mixed movements, underscoring investor caution amid persistent geopolitical tensions and lingering economic uncertainty. In the United States, expectations for a potential rate cut in June gained traction after several Federal Reserve officials indicated a willingness to ease policy should signs of labour market weakness emerge.
Investors' risk appetite remained high yesterday as US Treasury Secretary Bessent said that the current level of US-China tariffs is unsustainable. Trump also seemed confident over an eventual deal with China. The end point for tariff levels remains unclear, but Bessent said about the deal's term that a "reasonable estimate" would be to have it in place by Q3.
Investor risk appetite recovered somewhat on Tuesday. In the Eurozone, government bond yields fell as several ECB officials commented that inflation could stabilise at its 2% target sooner than expected just a few weeks ago. The US Treasury curve steepened, as short-term yields rose as traders bet that the US could strike some favourable trade deals with key partners.
Global financial markets had a subdued start to the week on Easter Monday, with only the US and Asian markets open, while European markets remained closed.
Financial markets saw a mixed session as investors navigate trade policy unpredictability and weigh the economic outlook. In the euro area, industrial production rose +1.1% mom in March, while the German ZEW economic sentiment index registered its largest monthly decline since 2022 due to uncertainty derived from US tariffs.
Sentiment recovered in financial markets following news that, over the weekend, President Trump exempted smartphones, computers and other electronics from the reciprocal tariffs announced on April 2nd (the 10% baseline tariff and additional tariffs to a list of other countries).
Financial markets had a mixed session on Friday, closing off a highly volatile week with large swings in asset valuations amid chaotic tariff announcements, increased trade tensions, and heightened uncertainty. The latest announcement came from China, which retaliated against the US by increasing the tariff on US imports to 125%.
Global markets endured heightened volatility on Thursday following President Trump's surprise announcement of a 90-day suspension of tariffs for most countries, excluding China. The European Union responded by delaying the implementation of its reciprocal measures.
US President Trump announced a 90-day pause on the so-called “reciprocal" tariffs for all targeted countries, but still maintained the 10% general tariff rate and raised the tariff rate for China to 125% after both countries’ authorities escalated the tension. US stocks rallied and the S&P had its largest intraday gain in over 17 years (+9.5%).
Tuesday saw another volatile session in the financial markets. Risk appetite rebounded from the Asian session on hopes of Trump's willingness to negotiate tariffs with some partners, which extended into the European session and the start of the US session. Asian and european stocks rose and while eurozone government bond yields rose slightly.
Yesterday marked the third consecutive session with an intense risk-off mode and high volatility in financial markets amid heightened tariff uncertainty and ongoing fears of a global economic slowdown. In this context, sovereign bond yields increased on both sides of the Atlantic, with euro area peripheral risk premia edging higher.