Financial markets started the week with mixed results. Investors balanced out the risk from the COVID outbreak in Europe with the re-appointment of Jerome Powell as the next Fed president and the nomination of Lael Brainard as the next VP, signaling policy continuity at the helm of the central bank.

Investors continued trading with a risk-off mood, with sentiment gloomed by the deterioration of the COVID situation across Europe and mixed signals from economic sentiment data. Investors were also taking position ahead of the bank holiday in the US later this week.

In yesterday's session, investors traded cautiously despite easing concerns on the omicron variant. On the data front, the euro area economic sentiment indicator eased in November from 118.6 points to 117.5 and inflation numbers continued to increase in the region. Germany's HICP inflation rose 1.4pp to 6.0% while in Spain it rose 0.2pp to 5.6%.

In yesterday's session, investors traded with a risk-off mood amid rising concerns over the omicron variant, rising inflation in the euro area (headline 4.9% and core 2.6%) and hawkish comments by Fed members.

In yesterday's session investors traded cautiously amid concerns on the new coronavirus variant and mixed economic sentiment data releases. November manufacturing PMIs ticked up in the euro area (58.4) but decreased in Spain (57.1 vs 57.4 in October), China (49.9 vs 50.6) and the U.S. (58.3 vs 58.4).

In yesterday's session, investors traded cautiously as they weighed concerns about the omicron variant with data confirming the tightness of the U.S. labor market (layoffs hit a 28-year low in November) and mounting inflation pressures (euro area producer prices rose by 21.9% y/y in October).

Financial markets closed last week with mixed results, with equity prices falling across Europe and EMs but recording a late-session rally in the US, as investors weighed the prospect of a more aggressive withdrawal of monetary policy stimulus by the Fed with upbeat earnings reports from some key US tech firms (e.g. Apple).

Investors traded with caution on Thursday, digesting a hawkish shift by major central banks in Europe and disappointing earnings results from some US tech giants.

Investors started the week trading with caution as they continued to digest the positive figures of the January's employment report in the US and took positions ahead of Thursday's release of CPI inflation. In the euro area, ECB comments moderated financial markets expectations for a big monetary policy tightening.

Investors closed last week trading cautiously, increasing their bets that the jump in inflation is likely to force central banks across advanced economies to deliver a more aggressive withdrawal of monetary stimuli. Financial markets are pricing in by yearend more than 150 bp hikes in the US and more than 50 bp hikes in the eurozone.

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 yesterday's volatile session, investors remained concerned about the implications the Russian-Ukrainian conflict can have on economic activity and inflation. Nevertheless, rumors that the EU is discussing a plan to increase the joint issuance of bonds benefited risk perception in Europe.

In yesterday’s session, investor sentiment improved and preference for riskier assets rose ahead of today’s meeting in Turkey between Ukraine and Russia foreign ministers. In addition, a Ukraine top foreign policy aide insisted that Ukraine is ready for a diplomatic solution. Brent and European gas prices moderated.

During a volatile session, financial markets experienced risk-off flows, as investors took on board another round of hawkish commentaries from various Fed officials, weak sentiment data in Europe and escalating tensions around Ukraine. Today, officials from NATO and EU leaders are meeting in Brussels to discuss new sanctions to Russia.

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.

Investors ended the week with mixed results, balancing out a solid employment report in the US (payrolls rose by 431.000 in March and the jobless rate fell to 3.6%) with upside surprises in inflation in the eurozone (HICP went up by 7.5% y/y in March). Ongoing talks between Russia and Ukraine also remained in focus.

Investors ended the week with cautious optimism, with equity indices rising across Europe and emerging markets but with mixed results in the US. Bank shares continued to outperform, reflecting expectations of a more aggressive interest rate normalization in advanced economies.

Investors started the week with no clear direction, as traders digested mixed signals from the GDP data in China and corporate results in the US. Financial markets were closed across Europe, Australia and Hong Kong.

During a volatile session, markets closed with mixed results, as investors digested a mix of hawkish comments by central bank officials, upbeat corporate earnings reports, positive macro data (e.g. consumer confidence in the eurozone) and a good showing by incumbent French President Macron at a TV debate against FN Le Pen.

Investors started the week trading with a risk-off mood following the announcement of lockdowns in several parts of Beijing. In this context, stock indices declined in the euro area and in emerging economies while late trading in the US, boosted by dip buyers, led the S&P 500 and the Nasdaq to advance.