Financial Markets Daily Report 26 January 2022
In yesterday's session, financial markets remained volatile amid rising geopolitical tensions around Ukraine. In addition, the new IMF macroeconomic forecasts did not have a positive impact on investors' sentiment as they showed a lower growth of global GDP for 2022 (from 4.9% to 4.4%), with a broad-based revision across the main economies.
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- In yesterday's session, financial markets remained volatile amid rising geopolitical tensions around Ukraine. In addition, the new IMF macroeconomic forecasts did not have a positive impact on investors' sentiment as they showed a lower growth of global GDP for 2022 (from 4.9% to 4.4%), with a broad-based revision across the main economies.
- In this context, European stock indices managed to recover some of the lost ground in the previous session, while US and Asian equities registered losses of more than 1%.
- In FX markets, the euro weakened against most AE and EM currencies and traded around $1.13. In commodity markets, oil and natural gas prices continued to increase (the barrel of Brent fluctuated above $88, a level not seen since 2014).
- Today the focus will be on the Federal Reserve meeting, where investors are expecting a strong signal for a first interest rate hike in March as well as more information regarding the strategy of the size of the balance sheet.