Financial Markets Daily Report
20 May 2022

A global selloff in stock markets continued on Thursday, as worries mounted about the direction of the global economic recovery and the potential spillovers on the outlook for companies’ earnings.

FMDR
  • A global selloff in stock markets continued on Thursday, as worries mounted about the direction of the global economic recovery and the potential spillovers on the outlook for companies’ earnings.
  • In Europe, the accounts of the April meeting by the ECB showed a broad support among policymakers for ending net asset purchases as soon as possible and for hiking interest rates shortly after. In the US, Kansas City Fed Head, Esther George, said that the “rough week in the equity markets” will not alter the central bank’s tightening plan.
  • In this context, equity indices fell further in both sides of the Atlantic, while sovereign bond yields ticked down, with bond spreads across the eurozone periphery widening. Oil prices rebounded, bolstered by a depreciation in the USD and expectations that China could ease some COVID restrictions soon.
  • Today, the EU Commission publishes its flash estimate for consumer confidence in the eurozone for May.
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