STOCK MARKET SNAPSHOT FOR 21/5/2022
A look at the day ahead in markets from Saikat Chatterjee.
Markets are starting to buckle in a week where the world’s top central bank issued its most dire warning yet on the need to kill surging inflation, just as fresh signs of rapidly deteriorating growth outlook emerged.
An index of world stocks is poised for its worst losing streak on record. Safe-haven gold is down nearly 4% this quarter. Safe-haven government debt, with prices on 10-year U.S. Treasuries down more than 10% so far this year, have been given a bit of respite.
Berenberg economists say the chance of a mild U.S. recession is roughly 40%. And UK consumer moral hit its lowest since records began in 1974, data released Friday shows.
What will turn this around? Global central banks releasing their tightening grip on monetary policy? A cessation of the Ukraine-Russia conflict or China relaxing its zero-COVID tolerance?
Key developments that should provide more direction to markets on Friday:
UK consumer morale hits lowest since records began in 1974: GfK
German April PPI, advance eurozone consumer confidence
Speaker corner: ECB’s Muller, Kazaks, Centeno, De Cos, Bank of England’s Huw Pill.
Source: Reuters (Reporting by Saikat Chatterjee; Editing by Dhara Ranasinghe)