Financial Markets Daily Report31 March 2022
In yesterday's session, investors' sentiment worsened amid mixed signals in the ongoing Russian-Ukrainian talks, concerns about gas supplies in Germany and rising inflationary pressures in the euro area. In Germany and in Spain, inflation rose in March to 7.6% and 9.8%, led by an increase in energy prices.
- In yesterday's session, investors' sentiment worsened amid mixed signals in the ongoing Russian-Ukrainian talks, concerns about gas supplies in Germany and rising inflationary pressures in the euro area. In Germany and in Spain, inflation rose in March to 7.6% and 9.8%, led by an increase in energy prices.
- In Europe, stock indices were mixed while sovereign yields rose as financial markets are now expecting a more hawkish response from the ECB against rising inflation. Peripheral spreads widened modestly. In the US, equities and yields on sovereign bonds declined.
- Elsewhere, the US dollar weakened against most advanced and emerging economies' currencies and the euro fluctuated above $1.11. Brent and European gas prices rose.
- Today the focus will be on euro area unemployment and US PCE deflator for February and the OPEC+ meeting.