financial markets

financial markets latest publications

March 6, 2020

Market comment | Fed intervention failed to calm markets, as core bond yields fell further

Global policy response failed to reassure investors, unnerved by the alarmingly rapid outbreak of Covid-19 beyond China and its impact on global growth and financial stability. Volatility soared and the USD and EMs FX depreciated.

March 5, 2020

Market comment | Uncertainty pushes rates to unknown limits

Financial markets remain volatile with the concerns about the virus spillover effect being the main market driver. Declines in the equity markets have resumed, as market risk measures (VIX) soar and U.S. yield reaches new lows.

March 4, 2020

Market comment | Equity stabilized but bonds remain well demanded

Equity markets recovered after yesterday’s Fed insurance cut failed to reassure financial markets. Markets stabilized, amid the advance of Biden in the U.S. Democratic primary. Despite the rebound in equity markets, sovereign bonds remain well demanded, suggesting investors’ risk appetite is still low.

March 3, 2020

Market comment | Fed made inter-meeting 50bps interest cut

The Fed cut 50bps interest rate and the ECB pivoted suggesting it is ready to take appropriate measures, while the G7 pledged a coordinated action. However, risky assets failed to gain much traction, while market risk measures such VIX remained high.

March 2, 2020

Market comment | Central banks mull over potential stimulus

Concerns about the Covid-19 spillover effect continued to weigh on financial markets although global central banks mull over stimulus. In this context, equity markets showed marginal rebound, although implied volatility in the S&P500 remained elevated.

February 28, 2020

Market comment | COVID-19’s rapid global spread sends risk assets into a tailspin

There was a very sharp risk-off mood across global financial markets this week, as COVID-19 spread rapidly beyond China. The 10Y U.S. Treasury yield hit a new record low, 1.17%, while risk premia widened in the European periphery and EMs; major central banks tempered expectations of rate cuts.

February 27, 2020

Market comment | Treasuries yields plunged, hitting historic lows. VIX soared to 32.

Covid-19 jolts equities and sovereign yields again as mounting coronavirus cases outside China fueled investor fears. In this context, market expectations for an additional ECB and Fed rate cut increased.

February 26, 2020

Market comment | Relief rally after dramatic equity fall

Although concerns about the Covid-19 spillover effects are still in place, financial markets recovered some ground after the sharp sell-off of previous days.