Financial Markets Daily Report 21 April 2022
Volatility continued to rein in financial markets on Wednesday, as investors took on board hawkish comments from central bank officials and the decision by the Chinese authorities to keep the benchmark lending rates unchanged.
- Volatility continued to rein in financial markets on Wednesday, as investors took on board hawkish comments from central bank officials and the decision by the Chinese authorities to keep the benchmark lending rates unchanged.
- ECB governing council member Martins Kazaks said the central bank could raise policy rates as soon as July to tackle the higher inflation. Separately, San Francisco Fed President Mary Daly noted that she supports raising the policy rate to about 2.5% by year-end, which would be consistent with 50 bp hikes in some meetings.
- Despite the comments, sovereign bond yields edged down across the board, as some analysts noted that the peak in both inflation and long-end rates may be nearing. Stocks rose across Europe but were mixed in the US, while oil prices were broadly unchanged, despite the sharp drop in crude inventories in the US.
- Today, Fed Chair Jerome Powell and ECB President Christine Lagarde are taking part in a panel discussion at the IMF.