An upward start for the main European stock exchanges. In the first moments of trading, the German Dax index rose by 1.6%, while the Cac40 rose by 0.22% and the London price list recovered and now rose by 0.24%. The market continues to closely follow the conflict and further talks between Russian and Ukrainian negotiators scheduled for today.
Also noteworthy is the decline in oil which sees Brent travel below the threshold of $ 110 per barrel. The market also highlighted the news of the largest wave of Covid infections that has been hitting mainland China since the beginning of the pandemic more than two years ago. After exceeding the threshold of 1,000 new cases for two consecutive days, new infections have jumped to more than 3,100 cases, according to the National Health Commission of China.
Week starts without indications. Today’s macro agenda does not include any data, helping to keep the focus on the Russia-Ukraine conflict. Please note that the United States will now move the hands forward by one hour. This implies that the usual US data will be brought forward by one hour during our time zone.
This week the focus will be on central banks, primarily the Fed which on Wednesday will announce its monetary policy decision, with a possible rate hike of 25 basis points, and will publish the new economic projections. The BoE (Thursday) is also expected to raise rates by 25 basis points to 0.75%. In Europe to follow on Thursday the speeches of numerous ECB central bankers in Frankfurt, including President Christine Lagarde. “It will probably be an important occasion to try to provide further clarification / recalibrate the message after the more hawkish-than-expected attitude that emerged at last Thursday’s meeting,” commented analysts from Mps Capital Services. Finally, Friday will be a day of technical maturities (futures and options), which could contribute to increasing market volatility.