Financial Markets Daily Report 01 March 2022
Financial markets started the week with a risk-off session where investors' preference for safe assets rose as they assessed the impact of the sanctions imposed on Russia.
- Financial markets started the week with a risk-off session where investors' preference for safe assets rose as they assessed the impact of the sanctions imposed on Russia.
- In this context, most stock indices declined (among the exceptions were the Portuguese PSI 20 and the US Nasdaq) while, in fixed-income markets, yields on sovereign bonds sank in the euro area and in the US. Nevertheless, investors' expectations for interest rate hikes from the ECB and the Fed remain broadly unchanged.
- In FX markets, safe-haven currencies, such as the Swiss Franc or the Japanese Yen, strengthened against their peers and the euro fluctuated above $1.12.
- Today, in addition to developments on the Russian-Ukrainian conflict, the focus will be on February's final PMIs for most advanced and emerging economies' and on Germany HICP inflation figures.