Market Drivers – European Session 16-3-2022

Canadian inflation hit 5.7% YoY in February, according to Statistics Canada’s latest headline Consumer Price Index (CPI) release on Wednesday. That was above the expected rise to 5.5% from 5.1% in January. The MoM increase in the headline CPI in February was 1.0%, a little above the 0.9% expected and above January’s 0.9% reading.

Retail Sales in the US rose by 0.3% on a monthly basis in February to $658.1 billion, the data published by the US Census Bureau showed on Wednesday. This reading fell short of the market expectation for an increase of 0.4%. On a positive note, January’s print got revised higher to 4.9% from 3.8%. 

Ukraine and Russia have made significant progress towards a potential 15-point peace plan that would include a ceasefire and Russian withdrawal from Ukraine if Kyiv declares neutrality and accepts limits on its military forces, the FT reported citing sources. The deal, which the FT said was discussed in full for the first time on Monday, would see Ukraine renounce its ambition to join NATO and promise not to host foreign military bases or weaponry in exchange for protection from Western allies.