Financial Markets Daily Report 14 julio 2020
Global markets started the week with a mixed session. In Europe, stocks rose across the board and sovereign yields advanced as investors eyed negotiations over the EU stimulus plan ahead of the European Council.
- Global markets started the week with a mixed session. In Europe, stocks rose across the board and sovereign yields advanced as investors eyed negotiations over the EU stimulus plan ahead of the European Council. Yet, other risk assets (e.g., U.S. stocks, commodities) declined amid rising COVID-19 infections and China's sanctions on U.S. officials.
- Euro area peripheral spreads narrowed –benefiting from improved sentiment in Europe, and as investors digested Fitch's decision to affirm the Italian sovereign rating at BBB- with a stable outlook.
- In FX markets, the euro rose moderately above $1.13 while the USD also strengthened against the other main AE and EM currencies. In oil markets, the barrel of Brent fluctuated slightly below $43.
- Data released this morning showed a rebound in China's external sector in June. Import growth jumped from -16.7% yoy in May to +2.7% and export growth increased from -3.3% yoy to +0.5% in June.