Financial Markets Daily Report28 April 2022
Volatility continued to dominate across financial markets in yesterday's session, with the key drivers being mixed earnings reports, the expectation of a tighter monetary policy from the Fed and the ECB, uncertainty surrounding the economic effects of the war in Ukraine and lockdowns in China.
- Volatility continued to dominate across financial markets in yesterday's session, with the key drivers being mixed earnings reports, the expectation of a tighter monetary policy from the Fed and the ECB, uncertainty surrounding the economic effects of the war in Ukraine and lockdowns in China.
- In this context, stock indices rose modestly in both sides of the Atlantic while some Asian indices registered losses. In fixed-income markets, yields on 10-year sovereign bonds ticked down in the euro area and rose in the US.
- In FX markets, the euro weakened and fluctuated below $1.06, a level not seen since early 2017. The strength of the dollar coupled with a war that affects relatively more the euro area economy than others is harming the euro.
- This morning, INE reported that headline inflation in Spain declined in April from 9.8% to 8.4% while core inflation rose from 3.4% to 4.4%. Later in the afternoon, Q1 2022 GDP figures for the US will be released.