In the first session of a week with low trading volumes, investors' sentiment kept the negative tone seen on Friday amid rising COVID-19 cases. In the US, Joe Biden's $1.75 trillion spending package was rejected in the Senate and contributed to the worsening economic outlook for the coming quarters.
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In yesterday's session investors traded with a risk-on mood after two sessions with generalized losses in risky assets across advanced and emerging economies.
In yesterday's session investors continued to trade with a risk-on mood but with more caution amid rising Covid-19 cases across advanced economies. In addition, some ECB members offered comments with a hawkish tone, opening the door even to a rate hike in 2022 if inflation were to increase further.
After Tuesday's risk-off session, which caused sharp declines in sovereign yields and losses in stock markets, investors traded yesterday with more optimism amid Jerome Powell positive comments about the strength of the US economy.
In yesterday's session, investors remained cautious and still showed some preference for safe assets, such as the US dollar or the Swiss Franc, against equities.
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.
Macroeconomic events and data releases shadowed latest developments of the Ukrainian war, as the ECB meeting and US CPI inflation centered stage in financial markets. On the latter, headline inflation rose as expected in February from 7.5% to 7.9% and core inflation rose from 6.0% to 6.4%.
In the last session of the week, investors traded cautiously amid ongoing talks between Russian and Ukrainian authorities, although during the weekend Russia intensified aerial attacks on the western part of Ukraine. This week talks are expected to continue between both countries and officials from China and the US will also hold a meeting.
In the first session of the week, investors remained concerned about the developments in Ukraine and mounting inflationary pressures in advanced economies. Their expectation for a tighter monetary policy from the ECB and the Federal Reserve pushed interest rates up.
In yesterday’s session investors' sentiment improved modestly ahead of today's Federal Reserve meeting, where we expect interest rates to be hiked by 0.25pp. Oil prices declined after lockdowns in China were announced, since that might dampen oil demand, and the barrel of Brent fluctuated below $100.
In yesterday's session, investors' sentiment improved amid optimistic comments from Russian officials, which increased the odds of a diplomatic solution, and following the description of the outlook from Jerome Powell, who said the US economy is very strong and with an extremely tight labor market.
In yesterday's session investors traded with cautious optimism, weighting solid economic data with negative comments by Russian authorities about the lack of progress in negotiations with Ukraine. Today, US President Joe Biden and his Chinese counterpart Xi Jinping will hold a meeting to discuss the ongoing conflict.
Investors traded with cautious optimism at the last session of the week, still hopeful a resolution in the Ukraine-Russia conflict could be possible. In addition, a meeting by US President Joe Biden and his Chinese counterpart Xi Jinping over the crisis in Ukraine ended without big surprises.
Financial markets started the week with a risk-off session, as traders digested another round of inconclusive peace talks between Russia and Ukraine as well as new hawkish signals from the Federal Reserve.
Investors traded with a risk-on sentiment on Tuesday, still waiting for more information about the ongoing talks between Russia and Ukraine and digesting hawkish signals from central bankers, with various Fed officials supporting a more aggressive normalization of policy interest rates.
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.
Investors traded with a risk-on sentiment on Thursday, following better-than-expected economic sentiment data across advanced economies and after EU leaders refrained from imposing sanctions on Russian energy exports. The US government also announced a plan to boost supplies of liquified natural gas to the EU.
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.
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.
Risk aversion continued to set the tone across markets on Thursday, following the imposition of lockdown measures in some big urban areas in China. In the US, new weekly jobless claims and the manufacturing ISM survey surprised positively, which, in turn, exacerbated fears among investors of more aggressive interest rate hikes.