Financial Markets Daily Report15 July 2020
Markets continued to exhibit a mixed performance as investors weighed data releases and increasing COVID-19 infections. European stocks and sovereign yields declined after euro area industrial production had posted a lower-than-expected rebound in May (+12.4% mom and -20.9% yoy). Yet, in FX markets the euro rose towards $1.14.
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- Markets continued to exhibit a mixed performance as investors weighed data releases and increasing COVID-19 infections. European stocks and sovereign yields declined after euro area industrial production had posted a lower-than-expected rebound in May (+12.4% mom and -20.9% yoy). Yet, in FX markets the euro rose towards $1.14.
- In the U.S., stocks advanced after the start of Q2 2020's earnings season showed large but smaller-than-expected drops in corporate profits. Nonetheless, sovereign yields were stable as inflation remained subdued in June (headline inflation +0.6% yoy, core inflation +1.2% yoy).
- In oil markets, Brent oil prices fluctuated close to $43 as the OPEC's monthly report showed a decline in production in June and broad compliance with oil output cuts (the compliance of OPEC+ stood at 107% in June).
- This morning, the Bank of Japan left its monetary policy stance unchanged.