Financial Markets Daily Report 27 agosto 2020
Investor optimism continued to favor risky assets in yesterday's session. Volatility nudged up, but stocks continued to rise across the board.
- Investor optimism continued to favor risky assets in yesterday's session. Volatility nudged up, but stocks continued to rise across the board.
- In Europe, stock market gains were led by German equities, supported by the German government's announcement that it will extend measures to cushion the economic impact of the pandemic (e.g., short-time work subsidies prolonged until end-2021 and financial aid to small and medium-sized businesses to the end of 2020).
- In fixed-income markets, U.S. and euro area core sovereign yields ticked up while euro area peripheral spreads narrowed. In FX markets, the USD was little changed and the euro stood stable at $1.18.
- Today, investors will pay close attention to Jerome Powell's Jackson Hole speech, in which he is expected to focus on the outcome of the Fed's monetary policy strategy review.