Weekly Market View from Realm Investment Management. Week ending 11th March 2022
Commodity prices and inflation remain the dominant concern for markets with the conflict in Ukraine pushing both higher. The US is cutting off all Russian oil and gas imports and Americans are preparing for higher prices – US annual Consumer Price Index (CPI) growth for February was reported at almost 8%, the highest since 1982. The UK has announced similar measures; it too will stop importing Russian oil and gas by year end. Worries about stagflation, high inflation and low growth are steadily increasing.
UK and European stocks managed to end the week higher, but US stocks were lower again, with the Nasdaq index at its lowest point last week, entering bear market readings by being more than 20% lower than its recent peak.
The European Central Bank (ECB) announced that it might end its current asset purchasing program earlier this year than expect, possibly in the third quarter.
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