Financial Markets Daily Report26 March 2021
In yesterday's session, stock volatility declined and investors traded with cautious optimism. Federal Reserve officials reiterated their intention to keep monetary policy unchanged until the economic recovery has been fully completed. Then, the exit of the stimulus would be very gradual and with great transparency.
- In yesterday's session, stock volatility declined and investors traded with cautious optimism. Federal Reserve officials reiterated their intention to keep monetary policy unchanged until the economic recovery has been fully completed. Then, the exit of the stimulus would be very gradual and with great transparency.
- In this context, stock indices were mixed in the euro area, increased in the US and Japan and declined in the emerging economies. In fixed-income markets, euro area sovereign bonds edged down, particularly in core countries, and peripheral spreads widened. The yield on the 10 year Treasury rose by 2bp.
- Elsewhere, in FX markets, the US dollar strengthened against most DM and EM currencies and the euro fluctuated below $1.18. In oil markets, despite the closure of the Suez Canal, the price of the barrel of Brent fell towards $62 amid investors' concerns on increasing COVID-19 infections.