U.S. stocks and Bonds were relatively steady after a long easter holiday weekend. The S & P 500 decreased marginally by 0.02% to 4,391.69, DOW was at 34,411.69, down 0.11% and NASDAQ 100 lost 0.14% to close at 13,332.36. The yield on 10-year UST was little changed at 2.86%. Brent crude was at $112.70 per barrel amid fresh supply disruptions following news from Libya’s closure of its biggest oil field due to protests against the current government while Gold fell 0.1% to $1,976.74 an ounce. Meanwhile St. Louis Fed President James Bullard indicated that rate increases of 75 basis points, although not the base case should not be ruled out as the central bank may need to move speedily to tackle inflation. Later today, Chicago Fed President Charles Evans is expected to speak while Fed Chair Jerome Powell, ECB President Christine Lagarde will discuss global economy at IMF event slated for Thursday. On the data front, U.S. initial jobless claims is due Thursday.
There have been reports that Russia has shelled both southern and eastern Ukraine overnight. According to Ukrainian president, Volodymyr Zelenskiy, Russia will now focus its military campaign on conquering the eastern Donbas region. IMOEX has lost around 3.4% on the news and is now trading below 2310. Russia 47 has shown limited reaction and stayed mostly flat at around 19. Russia 28 was slightly up and was last seen at around 25.80. Ukrainian bonds have moved lower with Ukraine 22 down at 61 from 62.5 and Ukraine 33 losing around 2% down to 35. EURRUB lost 3.5 roubles to 87.45 yesterday, as Europe has started preparing to pay in roubles for the Russian gas. USDRUB was stable at around 79.75. VEON Holdings BV has transferred a 45 billion roubles loan, which it took from Alfa Bank in December 2021, to VimpelCom. This was a second loan transferred by the company after another 45 billion loan was transferred earlier in April. Both loans were raised for five years and were due to be used for general corporate purposes. VIP 27 fell from 52 to 48 on this news.
Bunds open weaker following the trend from last session. The 10Y touched a high of 0.902% before dropping to 0.895%, down 1bp day-on-day. Peripherals mirrored the move on bunds with a weak open; 10Y BTPs yields went as high as 2.44% before retreating to 2.43%, 1 basis point firmer. Stocks were weaker as unfavourable global economic projections, Feds call for more aggressive hikes coupled with new sources of pressure on commodity supplies crushed appetite for risk assets; Consequently, the Stoxx 600, opened at 456.03 compared to previous sessions closing of 459.82.
SSA opens mostly weaker after the Easter break as rising rates weigh on sentiment. ANGOL, one of the stronger credits last week opens weaker but ZAMBIN opens steady. IVYCST (-.125) opens marginally lower even as the IMF gave a largely positive review during its recent Article IV mission. The IMF pointed out that risks are mainly external, and that inflation has been kept in check with the March figure slowing to 4.5% even as global prices increase.