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Volatility spiked amid fears that U.S.-China trade tensions may have damaged Q3 corporate earnings.

Global financial markets continued to trade on a cautious mood and U.S. and emerging-economy stocks nudged down.

Global risk aversion and tensions around Italy's fiscal stance continued to drive financial markets.

Stock markets declined across the board in the last trading session of the week, while in fixed-income markets U.S. and German sovereign yields ticked up and Italy's sovereign spread rose to 285bp.

In yesterday's session, global stock markets undid the gains registered on the previous day and losses were broad-based across the globe.

Stock markets had a positive tone and gains in equity indices were broad-based across advanced and emerging economies.

Yesterday's session was once again dominated by the uncertainty around the 2019's Italian fiscal deficit. In this context, the Italian risk premium continued to rise and exceeded the maximums reached in May (above 300bp).

Financial markets started the week in a positive mood after Canada finally agreed to join the U.S.-Mexico trade deal.

The last session of the week was marked by the announcement of the Italian 2019's fiscal deficit target (2.4% of GDP), which weighted on most European assets.

Investors digested the Fed's third rate hike of the year (see our detailed analysis of the meeting here) with moderate stock market gains, relatively unchanged sovereign yields, and a mixed behavior in FX markets, where the euro eased to $1.16 while some EM currencies appreciated (such as the Turkish lira the Brazilian real) and others weakened (such as Argentina's peso).
 

Yesterday, markets were relatively quiet as investors awaited for the outcome of the U.S. Federal Reserve's meeting.

Stock markets were mixed, with slight gains in the Eurozone (with the exception of Spain's Ibex 35), a mixed behavior of the U.S.' main indices and small losses in emerging equities (which were driven by Latin American stocks and partially counterbalanced by Asian indices).