Amadeus Weekly 2022 W16

Fabian Scheler

April 22, 2022

Once a week we summarize the most important market developments and macroeconomic events in a brief chartbook.

2 Minute Read

Mankind invented a system to cope with the fact that we are so intrinsically lousy at manipulating numbers. It's called the graph.

Statements by Powell indicating support for a 50bp hike in May to tackle soaring inflation rates triggered a bear flattening of the curve and sent the USD higher.
While the ECB has not yet committed to rate hikes this year but comments by Martin Kazak this week didn’t rule out a first increase in rates in July, and markets are now pricing in three hikes in 2022.
Expectations of a slightly more hawkish ECB stopped the decline of the EUR towards the end of this week and sent benchmark yields higher across the curve while gold declined.
Credit spreads widened this week, and equity markets are increasingly expressing concerns that China’s stubborn Zero-Covid policy and the war in Ukraine are ultimately leading to stagflation with supply-driven inflation pressures and rising interest rates.