- Markets stabilised as traders weighed comments from federal reserve officials following minutes from the central bank's most recent meeting, which provided more clarity on the bank's campaign to combat rampant inflation.
- US equities recovered from a slump, while the US treasury curve steepened, with 10- and 30-year yields reaching their highest levels since 2019.
- St. Louis Fed President James Bullard stated early in the session that he prefers raising rates to 3 - 3.25% in the second half of 2022, while Chicago Fed President Evans and his Atlanta counterpart Bostic stated that they prefer raising rates to neutral while still monitoring how the economy performs.
- The dollar strengthened against major peers.
- Data released Today showed that applications for state unemployment insurance in the United States fell by more than expected last week, supporting the Fed's contention that the economy is strong enough to withstand rate increases. Meanwhile, crude oil fluctuated after the International Energy Agency announced that, due to Russia's war in Ukraine, it would add 240 million barrels of oil to the global supply. Coal stocks increased after the European Union agreed to prohibit coal imports from Russia.
- The Fed minutes released on Wednesday revealed that officials were focused on containing inflation and outlined plans to reduce its balance sheet by more than $1 trillion per year. Despite being hawkish, the minutes provided some clarity for investors concerned that a too-sharp tightening path could stall economic growth.
- On the war front, President Vladimir Putin's army is expected to reassemble for a showdown in Ukraine's east after failing to seize Kiev with a lightning strike.
- The Europe Stoxx 600 fell, while shares of Atlantia Spa, the billionaire Benetton's Highway and Airport group, held their gains following a non-binding bid from Global Infrastructure Partners and Brookfield Asset Management. The European energy sector ended in the red, as Shell's loss from its withdrawal from Russia weighed on oil producers.
