Financial Markets Daily Report23 julio 2020
In yesterday's session investors traded cautiously as they digested political developments. On the one hand, tensions between the US and China rose as the White House gave China 72 hours to close its consulate in Houston amid accusations of spying. China has said it intends to retaliate.
- In yesterday's session investors traded cautiously as they digested political developments. On the one hand, tensions between the US and China rose as the White House gave China 72 hours to close its consulate in Houston amid accusations of spying. China has said it intends to retaliate.
- On the other hand, brexit gained relevance as UK officials said that London wants a free trade deal with the EU, but that they are prepared for a no-deal scenario. The transition period expires on December 31st 2020.
- In this context, euro area stock indices posted moderate losses while US stocks benefited from corporate earnings releases. In fixed-income markets, yields on sovereign bonds edged lower in the euro area and the Italian sovereign spread narrowed.
- In FX markets, the euro strengthened and reached an almost 2-year high, while the sterling pound weakened.