Financial Markets Daily Report21 marzo 2023
On Monday, volatility continued to dominate financial markets. While the session started with losses in stock indices and sharp declines in sovereign yields, sentiment improved throughout the day following the communication by some ECB officials. Equities closed higher and yields on sovereign bonds rose in the US and were mixed in the euro area.
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- On Monday, volatility continued to dominate financial markets. While the session started with losses in stock indices and sharp declines in sovereign yields, sentiment improved throughout the day following the communication by some ECB officials. Equities closed higher and yields on sovereign bonds rose in the US and were mixed in the euro area.
- To calm financial markets, the ECB released a statement noting that the procedures of the UBS-Credit Suisse operation are idiosyncratic, not a footprint for the euro area, as AT1 notes should only bear losses after equity.
- On monetary policy, Christine Lagarde said that current financial market turmoil is not necessarily at odds with fighting inflation, as it can dampen demand through discouraging lending and cooling down economic activity. Other GC members Kazaks and Stournaras voiced opposed views on the interest rate path ahead.
- Today the focus will be on March’s ZEW expectation index for Germany.