The Russia-Ukraine negotiations resume today with all eyes are on how the war is evolving and also on the worrying effects it has on the economy, especially in the euro area. The consequences are already being reflected as the euro area inflation rate reached yet another record high of 7.5% in March 2022 (preliminary), up from 5.9% in February, due to rising energy prices.
In the US, the week was marked by fears of a possible recession. The 5-year and 30-year yields inverted both on Monday and Friday, while the 2-year and 3-year yield curves inverted on Thursday. On the macro data front, the focus is on the US jobs report. The ADP employment report released on Wednesday said that 455.000 jobs were added in March 2022, slightly higher than the 450.000 forecast. On the other hand, nonfarm payrolls rose by 431.000 in March, below the market forecast of 490.000. The US unemployment ratefell to 3.6%, from 3.8% in the previous month. After the data publication, market reaction was limited.