Financial Markets Daily Report12 marzo 2021
Markets traded in a risk-on mood as investors signaled greater optimism about the economic recovery and lower concerns over inflation risks in yesterday's session. Volatility declined, stocks rose across advanced and emerging economies and tech-equities resumed their rally. Commodity prices also gained amid greater risk appetite.
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- Markets traded in a risk-on mood as investors signaled greater optimism about the economic recovery and lower concerns over inflation risks in yesterday's session. Volatility declined, stocks rose across advanced and emerging economies and tech-equities resumed their rally. Commodity prices also gained amid greater risk appetite.
- Euro area sovereign yields declined across the board as the ECB pledged to step up its weekly asset purchases in the coming months. At the same time, officials left the overall size of the €1.85tn PEPP unchanged and made no adjustments to the remaining policy parameters.
- The ECB's updated macroeconomic projections showed marginal adjustments to GDP forecasts (activity is expected to contract slightly in Q1). Inflation forecasts were raised in the short-term (+0.5pp to 1.5% in 2021) due to temporary effects. Medium-term inflation projections (2023) were left unchanged at 1.4%, well below the ECB's target.