Financial Markets Daily Report07 March 2022
In the last session of the week, investors traded with a risk-off mood and increased their demand for safe-haven assets.
- In the last session of the week, investors traded with a risk-off mood and increased their demand for safe-haven assets.
- In this context, stock indices plunged across de globe and yields on sovereign bonds edged down in both sides of the Atlantic. In FX markets, the euro continued to depreciate against the US dollar and fluctuated around $1.09.
- In commodity markets, oil and European gas prices rose as sources pointed to the US wanting to ban imports of Russian oil, which shook an already turbulent market.
- On Friday, the US employment report showed that non-farm payroll rose by +678k in February and the unemployment rate edged down by 0.2pp to 3.8%. Nevertheless, wage increases decelerated from 5.7%yoy in January to 5.1%. In the next March meeting, the Fed will start the rate hike increases given the rapid progress in the labor market.
- This week the focus will be on the ECB meeting (Thu.) and on the US CPI inflation figures for February.