Inflation Fears Control The Markets

Inflation fears pushed bond yields higher, with bonds posting record losses, as traders flocked to stocks. But futures contracts for US indices such as the Dow Jones, S&P 500, and Nasdaq, headed lower.

Oil prices also remained volatile with pressure.

Investors today seem to be thinking about the distribution of supplies for commodities, which is causing the price of raw materials to rise due to the war, which stocks have already priced

However, higher prices may get worse as US President Joe Biden joins a meeting with NATO at the European Union summit, to push for tougher sanctions against Russia, including a ban on Russian gas exports to NATO allies.

European shares advanced for the sixth day in a row, recording the longest winning streak since November 2021. While the shares that suffered strongly during the Corona closures outperformed, including shares of the car, travel, and entertainment industries.

Major indices recovered some of the losses incurred with Russia’s invasion of Ukraine, with investors buying the dips believing that sanctions will have a limited impact on commodity prices.

Ukrainian President Volodymyr Zelensky said talks between Ukraine and Russia are facing great difficulties but are moving forward as the West plans to announce more sanctions on Moscow amid a deepening humanitarian crisis.

After US Federal Reserve Chairman Jerome Powell’s comments on Monday, more Fed members called for a further rate hike, which discouraged investors from bonding.

French energy giant Total Energy and Credit Agricole have reduced exposure to Russia. The rise in oil prices helped increase Total’s shares by 0.1 percent, while Credit Agricole lost 0.6 percent.

Earlier this morning, Asian stocks rose strongly, with technology shares rising on Wall Street, despite the ongoing conflict between Russia and the West, which kept the gains compressing.

US stocks jumped on Tuesday, with record losses in the bond market as investors turned to equities after Jerome Powell surprised markets, and the Fed turned aggressively to the side of monetary tightening.

The S&P 500 is up 1.13% as it crosses above the 200-day moving average, which is a positive sign. However, the 50-day moving average crossed below the 200-day moving average, which formed a negative pattern