Financial Markets Daily Report25 septiembre 2020
In a volatile session, investor sentiment swung from optimism to pessimism with news and economic sentiment data releases.
- In a volatile session, investor sentiment swung from optimism to pessimism with news and economic sentiment data releases. On the one hand, the Ifo institute said that Germany's business morale rose in September for the fifth month in a row to 93.4 (92.5 in August).
- On the other hand, negotiations in the US Congress for another round of fiscal stimulus remain at a standstill. Yesterday's news initially hinted willingness of fresh talks between Republicans and Democrats, but another report released later in the day suggested that both sides would remain far apart.
- In this context, stock indices declined mildly in the euro area while the main US indices posted modest gains. Emerging economies' equities declined in Asia and rose in Latam. In fixed-income markets, the yield on the Bund and the Treasury was broadly unchanged while euro area peripheral spreads widened.