Financial Markets Daily Report17 febrero 2021
Investors traded in a more cautious mood in yesterday's session. Optimism about the medium-term economic outlook and recovering inflation expectations led to steeper sovereign yield curves. Yet, stock markets were mixed and closed moderately lower.
- Investors traded in a more cautious mood in yesterday's session. Optimism about the medium-term economic outlook and recovering inflation expectations led to steeper sovereign yield curves. Yet, stock markets were mixed and closed moderately lower.
- In the U.S., 10-year sovereign yields reached their highest level since February 2020. In Europe, sovereign yields rose across the board while peripheral spreads were little changed.
- On the data front, euro area GDP contracted marginally less in Q4, as Eurostat revised its estimates to -0.6% qoq and -5.0% yoy, +0.1pp with respect to the first figures released. In Germany, investor economic sentiment improved in February according to the ZEW index (71.2 points, its highest level since September 2020).
- Today the focus will be on the release of the minutes from the Fed's January monetary policy meeting.