Financial Markets Daily Report25 February 2022
The military operations of Russia in Ukraine centered the stage in yesterday’s session and investors traded on a risk-off mood. Stock indices declined in the euro area, Asia and Latin America, while US equities rose, as they already declined in the previous session. Russian equities fell by almost 50%.
- The military operations of Russia in Ukraine centered the stage in yesterday’s session and investors traded on a risk-off mood. Stock indices declined in the euro area, Asia and Latin America, while US equities rose, as they already declined in the previous session. Russian equities fell by almost 50%.
- In fixed-income markets, euro area sovereign yields plunged as investors expected the ECB to delay the withdrawal of monetary policy stimuli (although the expectations for the first interest rate hike remain broadly unchanged in Q422).
- In the US, the Fed is expected to start hiking rates in March, although the pace of tightening might slow down. Yields on US Treasuries edged down along the curve.
- In commodity markets, the price of the barrel Brent fluctuated around $100 while European gas prices rose by 50%, returning to the levels seen in December. Early this morning, gas prices were declining by ~15%.