Financial Markets Daily Report 14 octubre 2020
In yesterday's session, the pause in a vaccine trial after a patient fell ill weighed on sentiment. Stock indices declined across the globe (in the US, Q3 earnings season started disappointing investors) and yields on sovereign bonds edged slightly down. In FX markets, the US dollar strengthened against advanced and emerging economies' currencies.
- In yesterday's session, the pause in a vaccine trial after a patient fell ill weighed on sentiment. Stock indices declined across the globe (in the US, Q3 earnings season started disappointing investors) and yields on sovereign bonds edged slightly down. In FX markets, the US dollar strengthened against advanced and emerging economies' currencies.
- In oil markets, the price of the barrel of Brent rose despite a downwards revision of global oil demand for 2021 by OPEC.
- The IMF, in its October World Economic Outlook, now expects a more moderate fall in 2020 GDP (-4.4% from -5.2% expected in June) and a slower rebound in 2021 (+5.2% from +5.4% in June). The less-severe outlook is due to a quicker-than-expected rebound in some economies, but the economy still faces an incomplete and uneven recovery.
- The IMF expects 2020 GDP to contract by 8.3% and 12.6% in the euro area and Spain, respectively, and to rebound next year by 5.2% and 7.2%.