Financial Markets Daily Report27 April 2022
In yesterday's session, investors' sentiment deteriorated amid the expectation of a tighter monetary policy from the Federal Reserve and the ECB and disappointing corporate results. Concerns about the Covid-19 situation in China added to the somber sentiment.
- In yesterday's session, investors' sentiment deteriorated amid the expectation of a tighter monetary policy from the Federal Reserve and the ECB and disappointing corporate results. Concerns about the Covid-19 situation in China added to the somber sentiment.
- In this context, volatility rose and stock indices declined in most advanced economies (with the US Nasdaq falling by 4.0%). In fixed-income markets, yields on sovereign bonds decreased as investors moved to safe-haven assets such as the US Treasury and the German Bund.
- In energy markets, Spain and Portugal reached yesterday an agreement with the European Commission to limit the reference price for gas in electricity production to 50€/MWh. Nevertheless, news that Russia would halt gas flows to Poland and Bulgaria pushed European gas prices up by 11.6%.