Financial Markets Daily Report 17 February 2022
A cautious approach was retaken by investors on Wednesday, driven by uncertainty on the geopolitical risk involving Ukraine and the exit strategy of major central banks in advanced economies. These headwinds more than offset better-than-expected data for January in the US (+3.8% m/m for retail sales and 1.4% for industrial production).
- A cautious approach was retaken by investors on Wednesday, driven by uncertainty on the geopolitical risk involving Ukraine and the exit strategy of major central banks in advanced economies. These headwinds more than offset better-than-expected data for January in the US (+3.8% m/m for retail sales and 1.4% for industrial production).
- In the minutes of its January meeting, the Federal Reserve confirmed broad support to start hiking rates as soon as March but provided no clear indication on the future pace of tightening, noting that it would be data-dependent.
- In this context, stocks were mixed, sovereign bond yields ticked down in both sides of the Atlantic while the Brent price went up, nearing the $95 level. The EUR hovered around recent levels against the USD.
- EU leaders will hold an emergency Summit on Ukraine today, to be followed by a meeting of foreign ministers from the G7 on Saturday.