Financial Markets Daily Report 01 July 2021
Concerns over the evolution of the pandemic and, especially, the Delta variant worsened investors' sentiment in the last session of June. In addition, IMF chief economist Gita Gopinath said that the access to vaccines is unequal across countries and is causing a "diverging recovery".
- Concerns over the evolution of the pandemic and, especially, the Delta variant worsened investors' sentiment in the last session of June. In addition, IMF chief economist Gita Gopinath said that the access to vaccines is unequal across countries and is causing a "diverging recovery".
- On the data front, June's euro area inflation came in as expected (1.9%, -0.1 pp from May) and the ADP employment report showed that US private payrolls rose by 692k in June, pointing to potential upside surprises for the official employment report (to be released on Friday).
- In this context, stock indices declined in advanced and emerging economies (except for the S&P 500, that ticked up to reach a new record high) with losses being broad-based by sectors in Europe. Yields on euro area sovereign bonds declined, peripheral spreads narrowed and the US dollar strengthened against most G10 currencies.