Financial Markets Daily Report 20 May 2021
Yesterday, investors traded in a risk-off session in which stock indices declined across the board, core euro area sovereign yields ticked down and the US dollar strengthened against most currencies.
- Yesterday, investors traded in a risk-off session in which stock indices declined across the board, core euro area sovereign yields ticked down and the US dollar strengthened against most currencies.
- In oil markets, the price of the barrel of Brent extended its decline on concerns that rising COVID-19 cases in Asia may dampen oil demand.
- The release of the Fed's last meeting minutes showed that "a number of members" suggested that if incoming data continued to show rapid progress towards the Fed's goals they would soon adjust the pace of asset purchases. Nevertheless, progress since April towards maximum employment has slowed.
- In the euro area, April's HICP general inflation was confirmed at 1.6% (1.3% in March) while core inflation was revised 0.1 p. p. down to 0.7% (0.9% in March).