Financial Markets Daily Report07 April 2022
Sentiment deteriorated across financial markets on Wednesday, as investors digested the hawkish narrative in the accounts of the Fed’s latest meeting and the likely new imposition of sanctions against Russia.
- Sentiment deteriorated across financial markets on Wednesday, as investors digested the hawkish narrative in the accounts of the Fed’s latest meeting and the likely new imposition of sanctions against Russia.
- The minutes of the March meeting confirmed a broad support among Fed officials for starting unwinding asset holdings in the balance sheet as soon as next month, with a maximum pace of $95bn per month. There were also voices in favour of more aggressive interest rate hikes in upcoming meetings.
- The debate about quantitative tightening strengthened the upswing in bond yields in the US, a trend extended across Europe. Equity indices fell sharply while the USD appreciated against its peers. In commodity markets, oil prices ticked down amid concerns of subdued demand in China and after a plan by the IEA to release strategic reserves.
- Today, the ECB will release its accounts of the March meeting.