Weekly News Summary for August 16-22, 2019

Friday,  August 16: Treasury Yields Recover after Hitting Record Lows

Yields on US government debt improved on Friday, with the 30-year yield recovering from record lows, following a hectic week for the markets.

Investors saw the yield curve inversion, which economists saw as a sign of a potential recession, wound down, as the 10-year Treasury note rose above the 2-year yield.

Monday, August 19: Global Stocks Rise as Market Sentiment Improves

Stock markets worldwide rose on Monday, after optimism over trade discussions and further hopes for a softer policy rekindle risk appetite.

Asian equities sharply climbed, with Chinese shares taking the lead, as the PBOC announced its plans to reform interest rates, while the European market followed suit after German Finance Minister Olaf Scholz said the country’s government could provide $55 billion in stimulus to prevent a recession.

Tuesday, August 20: Oil Prices Steady on Stimulus Hopes

Oil prices rose for the third straight day on Tuesday, driven by expectations of the Federal Reserve stimulus to help combat a global economic recession that would lower the demand for crude.

Brent crude oil futures added 1 cent to $59.75 per barrel, having gained 1.88% on Monday, while WTI crude oil futures dropped 6 cents to $56.15 per barrel, after advancing 1.44% in the previous session.

Wednesday, August 21: Fed Not Yet Considering a Series of Rate Cuts

The minutes of the Federal Reserve’s July meeting showed policymakers cited concerns over global growth slowdown and the US-China trade tensions as headwinds but stopped short of signaling plans to perform a series of rate reductions.

The central bank suggested that the best course of action at the moment was to remain flexible and keep an eye on future economic data before they make any rate decisions.

Thursday, August 22: Focus Shifts to ECB Minutes and Eurozone PMIs

The euro-dollar pair might be the focus in the markets on Thursday, as the European Central Bank is due to release the minutes of its most recent policy meeting later in the day.

The minutes are expected to offer new hints on the size of ECB’s latest round of stimulus, which is set to be revealed on September, while the eurozone manufacturing and services PMIs will also be closely watched, as both are likely to have declined in August from the previous month.