Financial Markets Daily Report10 May 2022
In the first session of the week, investors' sentiment deteriorated amid concerns on whether the ongoing withdrawal of monetary policy accommodation will be able to tackle inflationary pressures without leading to a recession.
- In the first session of the week, investors' sentiment deteriorated amid concerns on whether the ongoing withdrawal of monetary policy accommodation will be able to tackle inflationary pressures without leading to a recession.
- On the data front, Chinese export growth declined in April to a near two-year low (3.9% yoy from 14.7%) and the euro area Sentix investor confidence Index dropped in May from -18.0 to -22.6, a level not seen since mid-2020. Today the Zew expectations index for Germany and the euro area will be released.
- In this context, the price of the barrel of Brent and European gas fell markedly and stock indices slipped in the euro area and, particularly, in the US with the energy sector leading the losses. In fixed-income markets, yields on sovereign bonds edged down in both sides of the Atlantic and euro area peripheral spreads widened.
- In FX markets, the US dollar strengthened against most currencies except for the euro, which fluctuated above $1.05.