- As investors reviewed the latest central bank speech and events in Ukraine, financial markets began the week with moderate changes across assets.
- Backed by Twitter, tech companies drove gains in American markets. After Tesla. CEO Elon Musk bought a 9.2% stake in the social media company, the stock jumped as much as 31%.
- Meanwhile, shares of US-listed Chinese stocks like Baidu and Tencent have risen after China eliminated a major roadblock in the way of full audit access for the US.
- The second quarter got off to a slow start, with investors waiting for the minutes of the Federal Reserve meeting on Wednesday and the start of earnings season next week. The 10-Year Treasury yield increased, and the dollar was stronger than its counterparts. As traders assessed China's COVID pandemic and attempts to tap strategic supplies, WTI crude oil climbed beyond $103 a barrel.
- Russian and Ukrainian negotiators will restart video discussions on Monday, after the European Union criticized Russia for atrocities committed by its soldiers in multiple Ukrainian towns, and President Biden suggested Vladimir Putin might face a war crimes trial. This is lowering expectations for a quick resolution to the peace talks.
- As the Federal Reserve raises rates to contain inflation fueled in part by commodities, the Treasury yield curve is flashing more indications that economic growth may stall. For the first time since 2007, the two-year yield has surpassed the 30-year yield, joining inversions on other portions of the curve. The Fed minutes, which will be released later this week, will shape expectations for a half-point rate hike in May and provide vital details on how the central bank will shrink its balance sheet.
