Mankind invented a system to cope with the fact that we are so intrinsically lousy at manipulating numbers. It's called the graph.
- Investors, notably in Europe, had to suffer another bumpy week as the Ukraine war proceeded and the indirect effects of sanctions loomed over corporate sales and profit outlooks.
- Brent briefly surpassed $130 earlier this week before dropping by more than 12% on Wednesday when Iraq and the UAE signaled production increases. However, the elevated volatility in oil markets was outshone by spectacular moves in other commodities. Trading in Nickel had to be halted after a short-squeeze pushed its price to over $100.000 per ton.
- Surging fuel prices and rises in other commodity futures such as wheat further added concerns about runaway inflation. Thursday’s ECB meeting set an increasingly hawkish tone as most members expressed willingness to weigh inflation risks higher than concerns about the impact of the war.
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