Europe Market Wrap

13 May 2022 11:01Crypto EUR Europe GBP Germany RUB Russia US Bonds US Indexes USD

- Futures and stocks in the United States rose on Friday after Federal Reserve Chair Jerome Powell rebuffed speculation of steeper interest-rate hikes. The recovery in cryptocurrencies boosted risk sentiment.

- Contracts on the S&P 500 increased by 1%, while those on the Nasdaq 100 increased by 1.6 %. Twitter Inc. shares fell as much as 26% in premarket trading in New York. after Elon Musk tweeted that his deal with the social media company was on hold for the time being. The Stoxx 600 index in Europe rose 1.3% as the lowest valuation since the outbreak drew buyers.

- The dollar index fell, but it is still on track for its longest weekly gain streak since 2018. Treasury yields rose across the curve, reversing some of their recent rallies. The yen fell back.

- Powell reiterated that the Fed is likely to raise rates by a half-point at each of its next two meetings and that it is not "actively considering" a 75 basis-point increase. Concerns that tightening monetary policy will cause an economic downturn remain in the shadows, suffocating rebounds. China's currency restrictions and Russia's war in Ukraine have also roiled various assets this year, pushing global equities close to a bear market.

 

- Ukraine's Foreign Minister Kuleba: I do not see the appetite from Russia for peace talks, food security talks.

- ECB's Centeno: The ECB should end the active purchase program in the first weeks of the third quarter, raise rates some time after.

- ECB's de Guindos: We will definitely stop bond purchases in July.