Today, market sentiment is one of risk
aversion. European stocks face another cautious session with rising
US-China tensions and no progress in negotiations on the new US stimulus
The Dollar regains some of the ground lost
on Thursday, with the currency's DXY index trading again above
93.00. Traders are likely to take a cautious approach to
currency risk ahead of the US-China trade talks on 15 August.
Today, the market sentiment is one of risk aversion. There are no signs of progress in the negotiations on the aid plan for the coronavirus in the United States, and US Secretary of State Mike Pompeo said the White House could ban other Chinese applications that it considers to jeopardise the country's national security.
The Dollar traded on the defensive during the Asian session on Thursday, as investor optimism about the approval of new fiscal stimulus in Washington seemed to decline, which reduces the currency's attractiveness.
market sentiment is an appetite for risk. News that the United States and China
will meet to discuss trade and expectations of progress in negotiations in
Washington over a stimulus package are driving the current positive sentiment
in the market.
retreated in the Asian session on Wednesday, following up on the previous day's
losses, with more bets that the US Federal Reserve will ease monetary policy
further and with investors attentive to negotiations in the US Congress on new
market sentiment is relatively mixed. Democratic leaders and White House
officials seem cautiously optimistic after another round of talks on Monday
about the new coronavirus aid package, under increasing pressure to reach an agreement
since millions of Americans are living without the $600 a week unemployment
benefit supplement, and U.S. President Donald Trump has launched potential
gained ground on the Yen this Tuesday in Asia, after robust economic data has
increased risk appetite by putting the Yen under pressure as a safe asset.
market sentiment is of an appetite for risk. Good manufacturing and service
data across Europe and China are fueling hope for a faster-than-expected
equities and U.S. futures continue to rise this Monday, before another week of
results as discussions continue over a US pandemic relief package.
Yields of US
Treasurys fell on Friday, registering a weekly and monthly fall due to fears
over the economic consequences for the global economy of the coronavirus.
investors assessed the potential terms of the next stimulus package and the
easing of coronavirus infections, while digesting the results of major US
companies. The Federal Reserve’s Chairman Jerome Powell also dominated the
attention of the markets.
In Europe, the
Stoxx Europe 600 index gained 0.5%, at the end of a session in which it
fluctuated between gains and losses. The German DAX index closed at the
waterline, the French CAC index lost 0.2% and the British FTSE 100 index rose
was mostly of risk aversion. The news that the United States Congress delayed
the presentation of a new stimulus package on the economy ended up motivating
this market sentiment.
tensions between the US and China have penalized Europe. The Stoxx Europe 600
index fell 0.9%, DAX fell 0.5%, CAC 40 lost 1.3% and FTSE 100 fell 1%. In the
United States, markets managed to resist losses and ended up closing the day in
the debt market fell again yesterday. The U.S.
the markets had a greater appetite for risk. European Union leaders have agreed
on a recovery plan. Good prospects for an Oxford vaccine are also enlivening
Europe 600 index rose 0.3%, after European officials reached a historic
agreement on the terms of the recovery plan. In the United States, the Dow
Jones appreciated 0.60% while the S&P500 grew 0.17% and the Nasdaq fall 0.81%.
Treasurys and European bonds showed a moderate reaction on Tuesday to the deal
on the European Union recovery fund.
was marked by a reversal of market sentiment. The day started out with a
feeling of risk aversion, but ended with the possible conclusion of the negotiations
on the European recovery fund, as well as with positive expectations regarding
an Oxford vaccine, which is most probably the cause of greater confidence in
Stoxx600, an index that aggregates the 600 highest quoted shares in the Old
Continent, closed at 0.75% to 375.51 points. The US indexes appreciated, with a
rise of the Dow Jones by 0.03% while the
S&P500 appreciated by 0.
Yesterday the market sentiment was one of
risk aversion. Fears surrounding the sharp rise in cases of covid-19
infection in the US also continue to weigh on investor sentiment, notably due
to the impact this will most likely have on the economy.
In particular, the Stoxx 600 – the
European benchmark index - fell 0.47%. In the United States,
the Dow Jones index depreciated by 0.50% while the S&P500 index
lost 0.34%, with the technological Nasdaq index being the only
one that won - although only by 0.73%.