Financial Markets Daily Report02 August 2021
Markets ended the week in a mixed mood (stocks declined, safe-haven currencies rose) as investors closed positions ahead of low trading in August. The publication of the Financial Markets Daily Report will stop for a few weeks, but we will be keeping an eye on markets and be back by the end of August. We wish our readers a great summer break.
- Markets ended the week in a mixed mood (stocks declined, safe-haven currencies rose) as investors closed positions ahead of low trading in August. The publication of the Financial Markets Daily Report will stop for a few weeks, but we will be keeping an eye on markets and be back by the end of August. We wish our readers a great summer break.
- U.S. sovereign yields dropped as data showed that PCE inflation (the Fed's preferred index) had roughly steadied in June (headline +4.0% yoy, core +3.5%). In FX markets, the USD strengthened moderately against most currencies, supported by lower risk appetite.
- In the euro area, core and peripheral sovereign yields were little changed despite stronger-than-expected Q2 GDP figures. The area-wide GDP advanced +2.0% qoq, boosted by a broad-based rebound (Germany +1.5%, France +0.9%, Italy +2.7%, Spain +2.8%, and Portugal +4.9%).