Financial Markets Daily Report24 March 2021
In yesterday's session investors traded with a less optimistic tone amid rising global COVID-19 cases and new lockdown measures in Germany. Additionally, Fed President Jerome Powell played down concerns of an overheating US economy as he said that the increase in inflation "will be neither particularly large nor persistent".
- In yesterday's session investors traded with a less optimistic tone amid rising global COVID-19 cases and new lockdown measures in Germany. Additionally, Fed President Jerome Powell played down concerns of an overheating US economy as he said that the increase in inflation "will be neither particularly large nor persistent".
- In this context, stock indices were mixed in the euro area and declined elsewhere, with touristic companies and industries correlated with economic growth underperforming. In oil markets, the price of the barrel of Brent dropped by almost 6% and fluctuated just above $60.
- In fixed-income markets, yields on euro area sovereign bonds declined and peripheral spreads narrowed. In the US, the yield on the 10-year Treasury bond fell by 7bp. The USD strengthened and the euro traded below $1.19.
- Today the focus will be on the flash release of March PMIs for the main advanced economies.