Equity markets climbed marginally this week. Russia said it would scale back military operations as talks with Ukraine continued. In terms of data, U.S. employment numbers came in strong once again, indicating an economy that is running hot and reinforcing U.S. Federal Reserve Chairman Jerome Powell’s rhetoric that the economy can withstand the coming rate hikes. Euro area inflation numbers were also released, with inflation soaring in March mainly on higher energy costs.
Yields fell for the week, breaking the three-week spree when yields soared. Market attention will be on the upcoming Fed and European Central Bank minutes.
Oil prices declined as U.S. President Joe Biden announced another oil reserve release, this time the largest release ever. The plan would see a million barrels of oil released per day for six months, totalling 180 million barrels. This would account for approximately 5% of domestic oil consumption. Oil prices were also impacted by concerns of slowing growth in China as that nation faces a renewed COVID wave.