Julien Ponthus gives a look at what lies ahead for markets today.

The only thing central banks can do is try to reduce second-round effect as the commodities and energy prices rise.

Investors are eager to hear from Jerome Powell (Federal Reserve Chair) and Christine Lagarde (European Central Bank President), how monetary policy can adapt without disrupting recovery.

Strategyrs have been keeping an eye on U.S. yields, particularly the gap between U.S. 10-year and 2-year notes. Inversions of this part of the curve may signal a recession.

Germany saw a further 1.4% increase in producers’ prices, although slightly lower than anticipated, providing another update on how Germany’s most important economy copes after investor sentiment fell to record levels. The collapsed expectations and falling investor sentiment have created a dire scenario.

The European Union is considering an oil embargo to Russia for its invading of Ukraine, which has fueled the recent spike in crude price.

This decision, even if the public is strongly on Ukraine’s side politically, could lead to political disaster for EU leaders.

Two euros per litre gasoline is available to Eurozone consumers. France’s Emmanuel Macron knows too well that there was a backlash against rising fuel costs and the “yellow vest street rebellion” in France.

The wheat prices are now at levels that were seen in 2007/2008, which is widely believed to have been a crucial factor in Arab Spring protests.

The Fed’s early tightening cycles have been well received so far. European and U.S. stock markets saw their best week in over a year since November 2020, when global markets rose after the COVID-19 vaccine discovery.

After a 0.7% decrease in the MSCI Asia-Pacific share index, European futures remain flat against cash trading today.

Markets already being hedged, traders will be curious to find out why China Evergrande Group’s shares were suspended until the announcement of the company.

Russian investors will continue to closely monitor domestic sovereign bonds’ trading as they resume today following a suspension of over a month in the aftermath of Moscow’s invasion in Ukraine.

Graphic: Wheat and FAO food price index at record highs: https://fingfx.thomsonreuters.com/gfx/mkt/zdvxojynbpx/Wheat%20and%20FAO%20food%20price%20index%20at%20record%20highs.PNG

Markets should be more informed by key developments on Monday

Russia allows more operations on the financial markets in the next two weeks

China maintains its benchmark lending rate unchanged as per expectations [nAZN02ALI3)

-Asking prices for UK houses see biggest March rise since 2004

-Speech by ECB President Christine Lagarde

-Fed speakers: Chairman Jerome Powell, Atlanta Fed President Raphael Bostic