Financial Markets Daily Report22 February 2021
Investors traded in a mixed mood on Friday as they became more confident in the economic recovery but also pondered the possibility of rising inflation.
Content available in
- Investors traded in a mixed mood on Friday as they became more confident in the economic recovery but also pondered the possibility of rising inflation.
- In Europe, strong earnings reports and positive data about the manufacturing sector led to a 0.9% rise in the Eurostoxx50. The manufacturing PMI for the eurozone rose from 54.6 in January to 57.5 in Febrary, a 4-month high. Meanwhile, periphery spreads fell, and particularly in Italy where Mario Draghi obtained the backing of parliament.
- In the US, 10-year Treasury yields tightened 4 basis points on concerns that President Joe Biden's $1.9 trillion fiscal stimulus plan may lead to a rise in inflation. In stock markets, the S&P 500 closed 0.2% down on Friday after remaining relatively flat throughout the afternoon.
- In oil markets, the recent rally lost steam and the price of the barrel of Brent fell 1.6% to $62.9.