All Eyes on Inflation and Monetary Policy
Investors are closely watching indicators about the Federal Reserve’s next move, in focus are the U.S. consumer price index data due on Tuesday and the producer price index scheduled for Wednesday. Inflation remains a keyword on everyone’s mind and every decision coming out of central banks is impacting the markets. Indeed, European Central Bank policymakers are set to meet in Frankfurt on Thursday to discuss their next monetary policy move.
Moreover, developments on the front lines in Ukraine are still causing volatility in the price of oil and other commodities, which is also having a troubling effect on the stock market.
Meanwhile, Societe Generale soared 4.4% following its decision to sell all stakes in Russia’s Rosbank as well as the Group’s Russian insurance subsidiaries, consequently terminating all its activities in Russia.
In Asia, Chinese markets marked losses overnight as investors reacted to higher-than-expected Chinese consumer and producer inflation readings. In fact, inflation reached a record 8.3% year on year as China continues to face its worst Covid-19 outbreak in two years.