Financial Markets Daily Report08 March 2022
Financial markets started the week with a sell-off session in stock markets as energy prices rose sharply following threats from the US to restrict oil imports from Russia and Russia threats to cut gas flows to Europe. In addition, the euro area investor sentiment index Sentix declined to -7.0 in March, the lowest level since November 2020.
- Financial markets started the week with a sell-off session in stock markets as energy prices rose sharply following threats from the US to restrict oil imports from Russia and Russia threats to cut gas flows to Europe. In addition, the euro area investor sentiment index Sentix declined to -7.0 in March, the lowest level since November 2020.
- In this context, European gas prices surged early in the morning to levels not seen before (335€/MWh) and Brent prices reached $138 per barrel, a level not seen since 2008. Nevertheless, during the session prices modereted although remained at elevated levels.
- In stock markets, volatility increased and indices declined across advanced and emerging economies. In fixed-income markets, yields on sovereign bonds rose in both sides of the Atlantic, as investors showed concerns on the short and medium run evolution of inflation. The euro weakened and fluctuated below $1.09.