Belgin Yakisan Mutlu
March 15, 2022•Update: March 15, 2022
ISTANBUL
Global markets remained highly volatile on Tuesday amid concerns of investors over Russia's war on Ukraine and ahead of the US Federal Reserve (Fed) meeting this week, which is expected to hike interest rates after more than three years.
The US Federal Reserve's two-day meeting will conclude on Wednesday. The Fed is widely expected to make a rate hike of 25 basis points to begin monetary tightening and could make at least another three interest rate hikes before the year-end.
Investors will closely watch the Fed's economic projections, which will include estimates of economic growth, unemployment, inflation, and interest rates. Those could be revised if the Fed officials believe that the US sanctions on Russia adversely affect the American economy, especially in energy prices.
China's decision to impose a lockdown in some cities with the daily virus figures surging to a two-year high also created volatility in the market.
Asian stock markets opened Tuesday mostly with losses as investors' confidence dived by China's lockdown and an unsuccessful fourth round of Russia-Ukraine talks.
Investors will follow US producer price index (PPI) for February, the euro area industrial production, UK's unemployment figure for January, and Germany's ZEW economic sentiment index for March set to be announced on Tuesday.
On Monday, with the hopes for progress in peace talks between Russia and Ukraine and China's lockdown measures which is expected to blunt demand, oil prices clawed back.
The price of Brent oil decreased by 5.7% to $104.2 per barrel at Monday's close, while it reached the lowest level of two weeks at $98.2 on Tuesday.
Major US stock indexes ended mostly lower Monday as volatility continued to dominate global markets, with the tech-heavy Nasdaq falling 2%.
European stock markets closed Monday in green as oil prices eased and the EU approval of a new set of sanctions against Russia targeting individuals and entities involved in the war on Ukraine.
