Financial Markets Daily Report27 August 2021
Investors traded more cautiously in yesterday's session as several regional Fed presidents (Bullard, George, Kaplan) signaled that they favor tapering asset purchases soon. Volatility rose and stock markets declined across advanced and emerging economies.
- Investors traded more cautiously in yesterday's session as several regional Fed presidents (Bullard, George, Kaplan) signaled that they favor tapering asset purchases soon. Volatility rose and stock markets declined across advanced and emerging economies.
- U.S. sovereign yields were little changed despite the messages coming from the Fed's hawkish wing. Euro area sovereign yields nudged up as the accounts of the ECB's July monetary policy meeting showed that a few members expressed reservations about the dovish shift to the bank's interest rate guidance.
- In FX markets, the USD strengthened while the euro continued to fluctuate moderately below $1.18.
- Today the focus will be on the Fed's Jackson Hole symposium and the tone that Chairman Jerome Powell sets on tapering asset purchases. U.S. PCE inflation figures for July are also released today.