Financial Markets Daily Report 30 June 2020
Investors started the week on a positive note. Volatility declined and stocks rose across Europe, the U.S. and Latin America.
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- Investors started the week on a positive note. Volatility declined and stocks rose across Europe, the U.S. and Latin America. Higher risk appetite also led to increases in commodity prices (the barrel of Brent edged closer to $42).
- Euro area sovereign yields were little changed as sentiment indicators improved moderately in June (ESI: 75.7 points from 67.5 in May, but well below pre-coronavirus levels). Also, Germany's Finance Minister told Germany's parliament that –after reviewing extensive ECB documents on the purchase program– the ECB's PSPP plan fully complied with the German Constitutional Court's requirements.
- Data released this morning showed that China's official PMI figures continued to improve in June for both manufacturing (50.9 points; May: 50.6) and services (54.4; May: 53.6). On the political front, China's parliament passed a new national security law for Hong Kong –a law which had already given rise to tensions with the U.S.