Financial Markets Daily Report 04 April 2022
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 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.
- The solid labour data in the US reinforced expectations for a more aggressive interest rate adjustment by the Fed, a move reflected in an inversion in the US treasury yield curve between the 2-year and 10-year bond.
- Sovereign yields also rose across Europe, while the USD appreciated modestly against the EUR. Equity prices increased in both sides of the Atlantic, supported by a further decline in commodity prices.
- The key releases this week include PPI inflation in the eurozone (today) and the final PMIs in advanced economies. In addition, both the Fed (Wednesday) and the ECB (Thursday) will publish the minutes of the March meetings.