- Markets ended the week on a negative note, with equities fading in the final minutes of trading and treasuries falling on Friday, following declines triggered by the Federal Reserve's plan for aggressive monetary policy tightening.
- The S&P 500 fell, bringing its weekly loss to 1.3%, while the tech-heavy Nasdaq 100 also fell, adding to its worst week since mid-March. Meanwhile, treasury losses widened, with investors looking for a reversal in curve steepening seen in the aftermath of the Fed minutes on Wednesday, which outlined plans to reduce the balance sheet alongside interest-rate hikes.
- For the seventh day in a row, the US dollar has gained ground against its peers, hovering near its highest level since July 2020.
- Oil rose after three days of losses caused by plans to release millions of barrels of crude from strategic reserves and China's demand-sapping virus outbreak.
- The Stoxx Europe 600 index rose 1.3% as investors capitalised on low stock valuations. Banks outperformed, with Banco BPM SPA surging after Credit Agricole SA purchased a 9.2% stake in the Italian lender.
- Global equities are down for the week as markets grapple with the Fed's anti-inflation campaign, Russia's grinding war in Ukraine, and China's COVID woes. The lockdown in Shanghai, which has recorded more than 21,000 new virus cases per day, has become one of President Xi Jinping's most difficult challenges. Expectations that China will take steps to support its economy are growing.
- The steepening of the yield curve contrasts with the flattening and inversions that have plagued markets this year. Last week, the two-year rate surpassed the 10-year rate for the first time since 2019, signalling a possible recession.
