Financial Markets Daily Report02 February 2021
An improving health situation in the US combined with the prospect of a bipartisan stimulus package have led to a 1.6% jump in the S&P 500 on Monday, its largest daily gain in two months.
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- An improving health situation in the US combined with the prospect of a bipartisan stimulus package have led to a 1.6% jump in the S&P 500 on Monday, its largest daily gain in two months.
- Meanwhile, in Europe, Eurostoxx50 rose 1.4% and periphery sovereign spreads fell as AstraZeneca agreed to provide the European Union with 9 million vaccines by March. Yields on Italian 10-year bonds fell 2bp as negotiations continue to form a new government to avoid fresh elections.
- New data showed that retail sales fell 9.6% month-on-month in Germany in December, a greater fall than expected. On Tuesday, investors will be on the lookout for Eurozone and Italian Q4 GDP numbers.
- In currency markets, the dollar reached a six-week high against the euro amid a more effective vaccine rollout and as CBO forecasts showed US GDP recovering from the pandemic by mid-2021.