Financial Markets Daily Report 14 septiembre 2020
Markets ended the week in a mixed session as U.S. tech equities continued to decline and investors digested the outcome of Thursday's ECB monetary policy meeting. Global stocks were lackluster, U.S. and German sovereign yields declined and euro area peripheral spreads nudged up amid lower risk appetite.
- Markets ended the week in a mixed session as U.S. tech equities continued to decline and investors digested the outcome of Thursday's ECB monetary policy meeting (see our take here). Global stocks were lackluster, U.S. and German sovereign yields declined and euro area peripheral spreads nudged up amid lower risk appetite.
- In FX markets, the euro was little changed around $1.18 after several comments from ECB officials. On Thursday Lagarde reiterated that they do not target the exchange rate but admitted the ECB is monitoring carefully FX developments, while on Friday Philip Lane noted that the appreciation of the euro dampens the inflation outlook.
- Also, brexit uncertainty continued to weigh on the GBP amid a row over the UK's proposed new legislation (which would override parts of the Withdrawal Agreement that had been signed with the EU).
- This week the Fed (see what to expect here) and the BoE will hold their September monetary policy meetings.