Market & Corporate Update Fabio Fraccalvieri &

Transcript:Market & Corporate Update Fabio Fraccalvieri &:
Market & Corporate Update Fabio Fraccalvieri & Filippos Patsis 2022.03.30 March 30th, 2022 BSFS Committee Meeting Market (1/3) China and Oil A dangerous strategy On Monday authorities announced extreme lockdown measures in Shanghai, China continues to pursue a zero-COVID strategy to combat a spiraling outbreak . Shanghai just launched a two-stage lockdown that will close down bridges and tunnels, and restrict highway traffic in China's largest city. BRENT CRUDE WTI CRUDE Oil Oil prices dropped on Monday as optimism about peace talks between Ukraine and Russia eased concerns about supply levels while new coronavirus lockdowns in China raised the prospect of falling energy demand. China is the world’s largest oil importer. Brent crude, the global benchmark, settled 6.8% lower at $112.48 a barrel, while US marker West Texas Intermediate dropped 7% to $105.96. Oil markets have swung violently over the past week, with intraday moves of at least 5% each day as traders grappled with the latest developments from Russia and China, as well as Saudi Arabia where an oil storage facility was bombed on Friday. Market (2/3) US Market Fed gets aggressive After comments from Jerome Powell, which said the Fed is prepared to act even more aggressively to tackle inflation, a bond selloff deepened this week. The central bank is prepared to raise interest rates by 50 basis points at the next policy meeting – he said. Consumer prices took a turn for the worse in February as CPI growth rose by 7.9%, representing the largest 12-month increase since January 1982. Indexes and Treasure Yield All three major stock market averages marked their second consecutive winning week, with energy topping Friday's sector leaderboard. The sector helped the S&P 500 to a 0.5% gain on Friday and a 1.8% rise for the week, while the tech-heavy Nasdaq fell slightly on Friday but led the major indexes for the week with a 2% rally and the Dow Jones ticked up 0.3%. The stock market's rebound has come even as the war in Ukraine continues with little sign of being resolved shortly and with interest rates rising while the Federal Reserve remains on track to raise rates throughout the year. After falling for the first two months of the year, US stocks are in position to notch their first monthly gain in March. Two-year Treasury yields surged 15 basis points and the 10-year yield added 12 basis points on the week.