Financial Markets Daily Report21 July 2020
In the first session of the week, investor sentiment improved as promising trial results from a potential COVID-19 vaccine renewed investor's hopes.
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- In the first session of the week, investor sentiment improved as promising trial results from a potential COVID-19 vaccine renewed investor's hopes.
- In this context, financial market volatility continued to decrease and reached a level not seen since late February while stock indices rose across the board, particularly so in China and the U.S.
- In Europe, the euro strengthened, sovereign yields edged lower and euro area peripheral spreads narrowed amid hopes of a recovery package. Just before 6 a.m. this morning, EU leaders announced an agreement for the recovery fund to be composed of €390bn in grants and €360bn in loans, and complemented by a €1.1tn seven-year budget.
- In oil markets, the price on the barrel of Brent edged up modestly above $43 as the increase in COVID-19 cases was offset by news on a potential vaccine.