Financial Markets Daily Report07 julio 2020
Investors started the week with optimism and a risk-on mood. Despite the increase in COVID-19 cases around the globe, optimism surged on the back of better-than-expected business sentiment indicators.
- Investors started the week with optimism and a risk-on mood. Despite the increase in COVID-19 cases around the globe, optimism surged on the back of better-than-expected business sentiment indicators. June's ISM non-manufacturing index in the US rose from 45.4 in May to 57.1, a level not seen since February.
- In this context, stock indices rose across the board, particularly in China, and the Nasdaq index (where technology has a signifficant weight) reached a new record high. In fixed-income markets, yields on euro area sovereign bonds edged down in the periphery and remained stable in Germany.
- In FX-markets, the US dollar weakened against most advanced and emerging economies' currencies and the euro fluctuated above $1.13. In oil markets, sentiment pushed the price of the barrel of Brent up towards $43.
- Today, the European Commission will release its Summer economic forecasts.