Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Investors traded with a risk-off sentiment during a volatile session on Tuesday, weighting in a potential ban on Russian coal exports by the EU and taking on board a new round of hawkish commentary from the Fed. The minutes of the March meeting will be released by the Fed later today.
Financial markets started the week with cautious optimism, with investors looking ahead for the release of the minutes of the March meetings later this week by the Fed and the ECB. Talks between Russia and Ukraine are due to continue, while western governments called for new sanctions against Russia, prompting a new rise in oil prices.
Investors ended the week with mixed results, balancing out a solid employment report in the US (payrolls rose by 431.000 in March and the jobless rate fell to 3.6%) with upside surprises in inflation in the eurozone (HICP went up by 7.5% y/y in March). Ongoing talks between Russia and Ukraine also remained in focus.
In the last session of Q1, investors traded with a pessimistic tone amid rising inflationary concerns and mixed signals coming from the war in Ukraine. In addition, economic sentiment data in China worsened (manufacturing and services PMI declined in March below the 50 threshold).
In yesterday's session, investors' sentiment worsened amid mixed signals in the ongoing Russian-Ukrainian talks, concerns about gas supplies in Germany and rising inflationary pressures in the euro area. In Germany and in Spain, inflation rose in March to 7.6% and 9.8%, led by an increase in energy prices.
Financial markets experienced risk-on flows as investors read positively the advances in Russian-Ukrainian talks. Despite not reaching a deal to cease fire, both sides agreed to de-escalate the conflict. In this context, volatility declined and stock indices rose across advanced and emerging economies' trading floors.
Financial markets started the week with cautious optimism as headlines on the war in Ukraine continued to weigh on investors' sentiment. Today, Russian and Ukrainian delegates are holding meetings in Turkey, with the Ukrainian authorities reportedly willing to discuss neutrality and other conditions.
Investors traded with cautious optimism at the last session of the week, taking on board a new round of hawkish comments from Fed officials, weak survey data (e. g. the monthly fall in the IFO business climate in March) and the EU-US plan to cut reliance on Russian natural gas. The Ukraine-Russia war has now extended for over 1 month.
Investors traded with a risk-on sentiment on Thursday, following better-than-expected economic sentiment data across advanced economies and after EU leaders refrained from imposing sanctions on Russian energy exports. The US government also announced a plan to boost supplies of liquified natural gas to the EU.
During a volatile session, financial markets experienced risk-off flows, as investors took on board another round of hawkish commentaries from various Fed officials, weak sentiment data in Europe and escalating tensions around Ukraine. Today, officials from NATO and EU leaders are meeting in Brussels to discuss new sanctions to Russia.
Investors traded with a risk-on sentiment on Tuesday, still waiting for more information about the ongoing talks between Russia and Ukraine and digesting hawkish signals from central bankers, with various Fed officials supporting a more aggressive normalization of policy interest rates.