Financial Markets Daily Report 29 October 2020
New lockdowns in Europe shook investor sentiment yesterday. Volatility jumped to levels not seen since early June and stock markets tumbled across the world (the main U.S. and European indices dropped by close to 4%). Euro area core sovereign yields declined while peripheral spreads rose, and the EUR weakened below $1.18.
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- New lockdowns in Europe shook investor sentiment yesterday. Volatility jumped to levels not seen since early June and stock markets tumbled across the world (the main U.S. and European indices dropped by close to 4%). Euro area core sovereign yields declined while peripheral spreads rose, and the EUR weakened below $1.18.
- France imposed a second national lockdown: people will only be allowed to leave home for essential work or medical reasons, non-essential businesses will close; but schools, public services and factories will remain open. Germany will limit social contact to two households and close bars, restaurants, gyms and cultural spaces for one month.
- This morning, the Bank of Japan left its key interest rates and asset purchases unchanged but warned that rising waves of coronavirus abroad cloud Japan's recovery. Later in the day, the ECB will hold its monetary policy meeting (expect the ECB to prepare the ground for easier measures in December) and U.S. Q3 GDP figures will be released.