MARKET WRAPS
Watch For:
EU EuroCOIN indicator, Flash Estimate Inflation; Eurozone, Germany, France, UK, Italy Manufacturing PMI; Italy Foreign Trade non-EU; U.S. Employment Report; no major earnings scheduled
Opening Call:
European stocks will likely open little changed Friday, remaining under pressure as worries over Ukraine and Fed tightening persist. In Asia, shares were mostly lower; the dollar extended its gains; while oil and gold prices were weaker.
Equities:
European stocks will likely struggle to break free of recent trading ranges Friday, as the impact of the Russia-Ukraine war, rising risks of recession and the Federal Reserve’s monetary tightening continue to weigh on sentiment.
After U.S. stocks ended lower Thursday, booking their biggest quarterly loss in two years, OANDA’s Edward Moya said Wall Street “will have a lot to debate over the next few months, but a choppy stock market seems likely as no clear answers will be had on when peak inflation happens and how aggressive will the Fed be with tightening until geopolitical risks are resolved.”
Economic Insight:
S&P has lowered its global GDP growth forecast by a 60 basis point reduction to 3.6% this year, followed by a 20 bps fall in 2023.
The eurozone is expected to take the biggest hit to GDP growth from the Russia-Ukraine conflict, while the largest driver of the U.S. downward growth revision comes from higher domestic interest rates.
S&P said the conflict…
