Financial Markets Daily Report28 enero 2021
Markets suffered a risk-off session yesterday. Volatility jumped to levels not seen since autumn and stocks sold off across advanced and emerging economies, while the USD strengthened and commodity prices declined.
- Markets suffered a risk-off session yesterday. Volatility jumped to levels not seen since autumn and stocks sold off across advanced and emerging economies, while the USD strengthened and commodity prices declined.
- U.S. sovereign yields were little changed after a rather uneventful Fed monetary policy meeting. Officials reiterated that they will not tighten the policy stance until the economy shows sustained improvement and pointed that the pace of economic recovery has moderated in the recent months.
- In the euro area, the president of the Dutch central bank, Klaas Knot, pointed out that the ECB still has room to cut rates. The euro weakened moderately and sovereign yields were little changed.
- Yesterday, the German government slashed its GDP growth forecasts for 2021 to3% (prev.: 4.4%). Today the focus will be on the release of U.S. Q4 2020 GDP figures.