Financial Markets Daily Report29 January 2021
Stock markets rebounded across advanced economies and implied volatility eased as risk sentiment improved.
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- Stock markets rebounded across advanced economies and implied volatility eased as risk sentiment improved.
- In fixed-income markets, U.S. sovereign yields nudged up after the release of data showing that GDP had continued to grow in Q4 (+1.0% qoq; see our take here) while euro area yields were little changed and spreads narrowed.
- Data released this morning in Europe showed that GDP had proved more resilient to restrictions in Q4 (France -1.3% qoq, Spain +0.4%). Yet, GDP figures remained well below pre-pandemic levels (France -5.0% yoy, Spain -9.1%) and their drop in 2020 as a whole (France -8.3%, Spain -11.0%) was larger than in the Great Recession.
- Today the European Medicines Agency will meet to decide whether to approve AstraZeneca's Covid-19 vaccine for emergency use. Yesterday, a commission in Germany recommended that this vaccine only be given to people aged under 65 as it considered that there were insufficient data to assess the vaccine's efficacy for older people.