Controversial sentiment prevailed in global financial markets last week. Investors were evaluating the published minutes of the December FRS meeting and the new macroeconomic statistics. The minutes of the December FRS meeting showed that the members of the Open Market Committee are ready for the accelerated completion of the stimulus programs. They were concerned about inflation and said that the labor market is on the verge of full employment. Market expectations are currently based on the fact that key rates will rise in March with the completion of the quantitative easing (QE) program. The next FRS meeting will be held on January 25-26 this year. The regulator’s comments caused a negative reaction in the markets. They are clearly indicative of the intention to actively strengthen monetary policy. Yields on US Treasuries maturing in 10 years and 30 years rose sharply. This, in turn, affected stock values. 

Meanwhile, annual inflation in Ukraine stood at 10.0%. Business sentiment in Ukraine has deteriorated.

Financial markets survey 10.01.2022