Financial Markets Daily Report 26 noviembre 2020
In yesterday's session, investors traded cautiously amid signs of a slow economic recovery. In the US, initial claims for unemployment benefits rose by 30k in the previous week and minutes from the Fed's November meeting showed how its members discussed how to provide more guidance on QE.
- In yesterday's session, investors traded cautiously amid signs of a slow economic recovery. In the US, initial claims for unemployment benefits rose by 30k in the previous week and minutes from the Fed's November meeting showed how its members discussed how to provide more guidance on QE.
- Meanwhile, in the euro area, the ECB warned in its Financial Stability Review that vulnerabilities in the corporate sector are increasing. It highlighted the role of policy support but said that a premature withdrawal of fiscal support could set back the economic recovery, transforming liquidity challenges into solvency issues.
- In this context, stock indices were mixed and yields on sovereign bonds were mostly unchanged. In FX markets, the US dollar weakened against most advanced economies' currencies and the euro fluctuated above $1.19.
- Today, the focus will be on the accounts of the ECB’s last monetary policy meeting.