Financial Markets Daily Report24 julio 2020
Financial markets performed poorly in yesterday's session amid worse-than-expected US labor market data (initial unemployment claims rose last week for the first time since late March) and rising tensions between the US and China.
- Financial markets performed poorly in yesterday's session amid worse-than-expected US labor market data (initial unemployment claims rose last week for the first time since late March) and rising tensions between the US and China.
- In this context, euro area stock indices posted mild losses while US indices decreased more severely. In fixed-income markets, sovereign spreads narrowed in the euro area periphery, yields in core countries ticked up and the longer end of the US yield curve edged down.
- In FX markets, the euro continued to strengthen and fluctuated above $1.16 while the US dollar weakened as investors worried that the surge in US COVID-19 cases will make the economic recovery harder.
- Today the focus will be on July's flash PMI for some advanced economies (France, Germany, the euro area, UK and the US) which might show the degree of the recovery achieved so far.