Financial Markets Daily Report22 June 2022
Risk appetite extended across markets on Tuesday, as investors weighted cheaper valuations against fears of a sharp slowdown in the global economy and a more aggressive withdrawal of monetary policy stimuli by central banks.
- Risk appetite extended across markets on Tuesday, as investors weighted cheaper valuations against fears of a sharp slowdown in the global economy and a more aggressive withdrawal of monetary policy stimuli by central banks.
- After a long weekend, stocks rebounded sharply in the US, led by energy and consumer discretionary shares. Equity prices also continued to edge higher across Europe, erasing part of the declines of the previous week. In sovereign debt markets, spreads across the eurozone periphery narrowed, despite hawkish comments by some ECB officials.
- In commodity markets, gas prices in Europe picked up further, following the recent reductions in Russian supplies, with reports noting that governments are turning to alternative sources and urging consumers to cut demand.
- Today, Federal Reserve president Jerome Powell is due to testify before the Senate. Data released this morning showed CPI inflation rose to 9.1% y/y in May in the UK, a new 40-year high.