Festive trading day in Europe and slight losses on Wall Street

In the Variable Income market yesterday we lived a festive day, where the European stock market remained closed. It did open Asia, where falls prevailed, and Wall Street, where the session left us in doubt. The main indices fell with slight losses: the Dow Jones dropped 0.11%, the S&P 500 fell 0.02%, while the biggest drop occurred in the Nasdaq, with 0.14%. Before the Easter break, the European stock markets experienced a day from less to more in the last session of the week, with one eye on the meeting of the European Central Bank, in which expectations were finally fulfilled that the program of shopping ends in June definitively. Elon Musk livened up the trading day by launching a hostile offer on the social network Twitter, for an amount of 43,000 million. Today the European markets return attentive to the great Russian offensive in eastern Ukraine and the escalation in debt interest. In relation to the conflict between Russia and Ukraine, the President of Ukraine reported that Russia was bending forces in the Donbass area. Yesterday the governor of the Russian Central Bank warned of the serious consequences of the conflict for her real economy. It is estimated that around 200,000 people may lose their jobs in Moscow due to the closure of foreign companies and the mayor of Moscow announced aid of more than 3,000 million rubles ($ 37 million) for those affected, which would come from the state budget. In the raw materials market, cereals rose to record levels due to the lack of cultivation in Ukraine. Oil also rebounded again due to interruptions in supplies from Libya. Along these lines, the United States announced its intention to offer oil and gas companies drilling rights on federal land in at least eight states starting in June. Continuing with the US, the banking sector rose on the stock market, dragged down by the publication of results from Bank of America. The market is currently very cautious in the face of inflationary pressure, which could lead to a very aggressive response from the FED, as polls give a 96% chance of a 50bp rate hike at the May meeting and 215bps accumulated in 2022. Yesterday the president of the St. Louis FED, James Bullard, spoke of an increase of 75bps with the aim of raising rates to 3.5% by the end of the year, for his part the week Last week, the president of the Cleveland Fed, Loretta Mester, said along the same lines that the goal is to raise rates fast enough to reduce inflation without damaging the economy. In the United States, the weekly requests for unemployment benefits published last Thursday were 185,000, slightly higher than the figure of 171,000 estimated by analysts and the figure for the previous period (167,000), despite the fact that they remain at very low levels due to the strength of the American labor market. The preliminary data for the consumer sentiment index from the University of Michigan for the month of April was 65.7 points, easily exceeding the figure for the previous month (59.4 points), probably due to the forecast of wage increases. On the Public Debt side in the US, with a labor market recovering to pre-pandemic levels, treasury yields continue to rise, with the T-Note at 2.85% (+15 bps since Wednesday and at levels not seen since 2018). INFORMATIONTitleFestive stock market day in Europe and slight losses on Wall StreetDescriptionIn the Variable Income market yesterday we experienced a festive day, where the European stock market remained closed. It did open Asia, where falls prevailed, and Wall Street, where the session left us in doubt. Author GLOBALCAJA

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