The global risk appetite eased during the week as minutes from the US Federal Reserve and the European Central Bank indicated that policymakers were stepping up efforts to curb inflation. At 0811 GMT, the global MSCI stock index (.MIWD00000PUS), which tracks stocks in 50 countries, rose 0.2%, but fell 1.3% for the week and on track for the first weekly loss in four countries . Sign up now for FREE unlimited access to Reuters.com Register The pan-European STOXX 600 (.STOXX) was 1.3% higher as markets in Europe rose with a modest recovery on Wall Street on Thursday. Eddie Cheng, head of global asset portfolio management at Allspring Global Investments, said the rise in European equities on Friday morning was “probably a short break” from the week’s downturn, but that investors were still by The Fed raises interest rates and the war in Ukraine. “Uncertainty is not decreasing, in fact it is increasing,” he said, noting new sanctions in Russia. The European Commission proposed new sanctions on Russia on Tuesday, including a ban on the Russian coal market. read more The risk of the French presidential election was evident in the bond markets with French borrowing costs rising, compared to the general decline in yields on key European government bonds. Investors are worried about the dangers of far-right candidate Marine Le Pen’s victory over incumbent President Emanuel Macron. “Macron’s victory would be welcomed by the markets, as the markets would honor the reduction of political uncertainty and continued corporate-friendly management,” said Lale Akoner, Senior Strategic Market Analyst at BNY Mellon Investment Management. A Lepen victory, though still unlikely, is now on the brink of error ahead of Sunday’s first round of voting, opinion polls show. read more The 10-year gap between French and German yields approached the highest level since April 2020 at 54.5 basis points. In U.S. bond markets, longer-term bonds have borne the brunt of this week’s sell-off as traders see the long-term hit hardest by the Fed’s cut in bonds. The 10-year benchmark yield rose almost 27 bps to 2.6584% this week, but was stable at the start of European trade. The US dollar was the main beneficiary of the increase in US yields and the dollar index was higher for the seventh consecutive day and on track for its best week at five. The stronger dollar has increased pressure on the euro and the yen. The Japanese currency was close to the lowest level in recent years and is fighting at 124.00, while the euro fell to its lowest level since March 7 at 1.0848 dollars. Brent crude futures rose below $ 100 a barrel earlier. US crude futures rose 0.8% to $ 96.76 a barrel. Gold fell slightly to $ 1,931, but was going to rise 0.3% for the week. The big cryptocurrencies made small gains with Bitcoin trading at $ 43,813, although it was still well on its way to its second consecutive weekly drop. Global Shares Sign up now for FREE unlimited access to Reuters.com Register Report by Samuel Indyk and Elizabeth Howcroft. Edited by: Nick Macfie Our role models: The Thomson Reuters Trust Principles.
