Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Investors continued to trade with caution amid comments from central bank officials which reinforced their intention to tame elevated inflation. In particular, Fed President Powell said in a panel discussion with ECB and BoE presidents that the objective is to bring down inflation, even if this process could put economic growth at risk.
In yesterday's session, financial markets closed with mixed results as several drivers affected sentiment differently. While the easing of Chinese lockdowns measures boosted risk appetite, the worse-than-expected reading of US consumer confidence (98.7, down from 106.4) erased initial signs of recovery in risky assets.
In yesterday's session, investors traded cautiously as they continued to assess whether central banks will be able to tame inflationary pressures without causing a hard landing. Geopolitical news centered the stage too, after the G7 meeting in Germany and ahead of today's NATO summit in Madrid.
In the last session of the week, investors' sentiment improved amid optimistic comments by central banks' officials and a revision in US inflation expectations data by the University of Michigan.
Risk aversion returned to the fore during a volatile session on Wednesday, as concerns about the health of the global economy, high inflation and monetary policy tightening resurfaced amid hawkish comments by central bank officials.
Risk appetite extended across markets on Tuesday, as investors weighted cheaper valuations against fears of a sharp slowdown in the global economy and a more aggressive withdrawal of monetary policy stimuli by central banks.
Investors started the week trading cautiously optimistic, in a session characterized by low volumes due to a holiday in the US and no major macro data releases.
Markets ended the week with a relief rally, recovering only a fraction of the decline in previous sessions, after a week dominated by monetary policy decisions by major central banks and fears among investors of an economic recession.
Monetary policy and recession fears centered, again, the stage in financial markets. While investors focused on risks of an upcoming recession in the US, central banks continued tightening their monetary policy stance.
In yesterday's session, central banks gave some fresh air to financial markets, fueling a relief rally across the board, with yields on sovereign bonds declining sharply in both sides of the Atlantic.
During a volatile session, investors continued to trade with a cautious mode, taking position ahead of the crucial Federal Reserve meeting today. Implied forwards suggest a 75 bp interest hike is expected to be announced today.
Financial markets started the week with another sell-off session in which traders increased their demand for safe-haven assets. The higher-than-expected US inflation reading is still weighing on sentiment and investors raised their bets for a 75bp interest rate hike from the US Federal Reserve this Wednesday.