Equity markets stalled amid a further rise in Covid cases in the US; and continuing\ tensions between China and India, and North and South Korea. The S&P500 is down 0.4% on the day, with bond yields and currencies broadly unchanged.

Sentiment was helped by strong US retail sales data and reiterated support from Fed Chair Powell, and only briefly dented by news of rising Covid cases in parts of the US and activity restrictions in China. The S&P500 is currently up 1.1%, but risky currencies are slightly lower and bond yields are little changed.

Sentiment improved in Europe and the US. Equity markets shrugged off news of new infections in China, later supported by the Federal Reserve’s announcement that it would start buying corporate bonds. The S&P500 is up 0.8%, and bond yields and risky currencies are higher.

Sentiment was mixed. US equities opened sharply higher but by close had whittled down gains to +1.3%. US bond yields and risky currencies were rangebound. News flow was light.

Risk sentiment worsened as Covid cases in some parts of the US started rising again, markets also worrying about the Fed gloomy economic projections released yesterday. The S&P500 is down 5.8%, with risky currencies, bond yields and commodities also lower.

The Federal Reserve’s policy stance was more accommodative than the market had expected, causing bond yields to fall. The USD is slightly lower, while US equities were mixed, the S&P500 currently down 0.5%.

Equity markets in the US and Europe stalled. The S&P500 is down 0.8%, although tech stocks still performed well – the NASDAQ 100 making a fresh record high. Bond yields fell on the eve of the FOMC decision. Safe-haven currencies outperformed.

Equity market sentiment remained upbeat, the S&P500 up 1.2% to a fresh three-month high and within 5% of the record high made in February. Risky currencies followed suit. Government stimulus and recovery expectations remain the main drivers of sentiment.

A surprisingly strong US jobs report boosted appetite for US assets. May non-farm payrolls defied expectations, with job gains instead of losses, helping the S&P500 rise 2.6% and pushing bond yields to a three-month high.

Equity markets took a breath, the S&P500 down 0.7% on the day. Risky currencies and bond yields, though, made fresh recent highs. The ECB increased its asset purchase programme.