Financial Markets Daily Report27 julio 2020
Investors ended the week in a cautious mood as rising U.S.-China tensions overshadowed a rebound in economic sentiment indicators.
- Investors ended the week in a cautious mood as rising U.S.-China tensions overshadowed a rebound in economic sentiment indicators. Stocks retreated across advanced and emerging economies and, in FX markets, the USD weakened while the euro (at year highs) and the safe-haven yen strengthened.
- Euro area sovereign yields edged up on the back of recovering activity indicators. The area's composite PMI rebounded into expansionary territory in July (54.8 points) for the first time since February. The bounceback was stronger in services (55.1) than in manufacturing (51.1) but generalized across France (57.6) and Germany (55.5).
- In commodity markets, the barrel of Brent oil was steady at $43 while gold continued to rise.
- This week the focus will be on the Fed's monetary policy meeting (Wednesday) as well as on the release of Q2 GDP data in the U.S. (Thursday) and the euro area (Friday).