Financial Markets Daily Report 08 abril 2022
Another session dominated by risk aversion, as investors continued to digest the hawkish rhetoric from central banks in major advanced economies and mixed signals from the ongoing conflict in Ukraine.
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- Another session dominated by risk aversion, as investors continued to digest the hawkish rhetoric from central banks in major advanced economies and mixed signals from the ongoing conflict in Ukraine.
- The minutes of the latest ECB meeting showed a widening support among officials for starting to roll back policy stimulus, as the three forward guidance conditions for lifting policy rates were assessed to being met soon. Separately, St. Louis Fed President James Bullard said that he supports lifting policy interest rates by 300 bp this year.
- In this context, equity prices edged lower in Europe and across emerging markets while rising modestly in the US. Sovereign bond yields continued to march higher, while the EUR depreciated further against the USD.
- In commodity markets, concerns about the deteriorating COVID situation in China continued to exert downward pressure on prices. In addition, there were no clarity on the next stage of sanctions by the EU against Russia.