Financial Markets Daily Report 28 March 2022
Investors traded with cautious optimism at the last session of the week, taking on board a new round of hawkish comments from Fed officials, weak survey data (e. g. the monthly fall in the IFO business climate in March) and the EU-US plan to cut reliance on Russian natural gas. The Ukraine-Russia war has now extended for over 1 month.
- Investors traded with cautious optimism at the last session of the week, taking on board a new round of hawkish comments from Fed officials, weak survey data (e. g. the monthly fall in the IFO business climate in March) and the EU-US plan to cut reliance on Russian natural gas. The Ukraine-Russia war has now extended for over 1 month.
- New York Fed head, John Williams, throw his support for a 0.5 pp policy rate increase, if needed, to combat inflation. By contrast, ECB member Isabel Schnabel said the central bank would consider extending its asset programme beyond this summer if the economy falls into a "deep recession" due to the conflict in Ukraine.
- In this context, sovereign bond yields continued to trade higher, equity prices rose modestly while the EUR depreciated. Gas prices in Europe ticked down, following the EU-US announcements.
- The key releases this week include the HICP for March in the eurozone and the payrolls report in the US, on Friday.