Financial Markets Daily Report 02 November 2020
In the last session of the week, investors traded cautiously amid growing COVID-19 cases and better-than-expected Q3 GDP releases in the euro area (euro area aggregate +12.7 vs Consensus +9.6; Spain +16.7 vs Consensus +13.5%).
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- In the last session of the week, investors traded cautiously amid growing COVID-19 cases and better-than-expected Q3 GDP releases in the euro area (euro area aggregate +12.7 vs Consensus +9.6; Spain +16.7 vs Consensus +13.5%).
- In this context, stock indices were mixed in Europe while US equities declined after some deceiving earning releases. In fixed-income markets, yields on 10-year US Treasuries jumped while euro area sovereign yields barely moved (the surge in the Italian yield was driven by a change in the Bloomberg reference).
- Elsewhere, the price of the barrel of Brent continued to decline and fluctuated below $37 while the euro weakened further below $1.17.
- This week, the focus will be on the US Presidential elections (Tuesday), on the Federal Reserve monetary policy meeting (Wed.), in which we expect no major changes, and on October PMIs.