Financial Markets Daily Report30 March 2022
Financial markets experienced risk-on flows as investors read positively the advances in Russian-Ukrainian talks. Despite not reaching a deal to cease fire, both sides agreed to de-escalate the conflict. In this context, volatility declined and stock indices rose across advanced and emerging economies' trading floors.
- Financial markets experienced risk-on flows as investors read positively the advances in Russian-Ukrainian talks. Despite not reaching a deal to cease fire, both sides agreed to de-escalate the conflict. In this context, volatility declined and stock indices rose across advanced and emerging economies' trading floors.
- In fixed-income markets, yields on euro area sovereign bonds edged up (the German Bund traded above 0.70%, a level not seen since early 2018) and peripheral spreads narrowed. In the US, the 10-year Treasury yields declined while shorter maturity bonds rose and the spread between the 2-year and 10-year briefly inverted.
- Elsewhere, the price of the barrel of Brent edged down while European gas prices rose. The USD weakened amid risk-on flows and the euro fluctuated above $1.10.
- This morning INE released the headline CPI inflation for March, which rose from 7.6% to 9.8% y/y.