Financial Markets Daily Report13 mayo 2021
Yesterday, volatility rose amid investor inflation worries. U.S. CPI inflation jumped in April to +4.2% yoy (headline index, +1.6pp) and 3.0% (core index, +1.4pp). Fed Vice Chair Richard Clarida reiterated the central bank's view that the inflation rebound is largely transitory as it is mostly driven by base effects and short-term supply bottlenecks.
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- Yesterday, volatility rose amid investor inflation worries. U.S. CPI inflation jumped in April to +4.2% yoy (headline index, +1.6pp) and 3.0% (core index, +1.4pp). Fed Vice Chair Richard Clarida reiterated the central bank's view that the inflation rebound is largely transitory as it is mostly driven by base effects and short-term supply bottlenecks.
- The U.S. sovereign yield curve steepened and U.S. stock markets declined in a retreat led by tech equities. In FX markets, the USD strengthened across the board.
- In the euro area, sovereign yields also edged up but European stocks closed mostly higher, lifted by optimism about economic reopenings.
- The European Commission revised up its euro area GDP projections to 4.3% and 4.4% in 2021-22 (Winter forecast: 3.8% and 3.8%). GDP projections for Spain were raised to 5.9% in 2021 and 6.8% in 2022 (Winter: 5.6% and 5.3%).