Financial Markets Daily Report 16 March 2022
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 modestly ahead of today's Federal Reserve meeting, where we expect interest rates to be hiked by 0.25pp (more detail here). Oil prices declined after lockdowns in China were announced, since that might dampen oil demand, and the barrel of Brent fluctuated below $100.
- In this context, stock indices were mixed in the euro area, rose in the US (spurred by advances in technology companies) and declined in emerging markets. In fixed-income markets, yields on sovereign bonds edged down in the euro area and peripheral spreads narrowed modestly.
- In FX markets, the US dollar and safe-haven currencies, such as the Japanese Yen and the Swiss Franc, weakened modestly against the rest of advanced and emerging economies' currencies. Nevertheless, the euro continued to fluctuate below $1.10.