Peace hopes fade, European inflation soars

Thursday 31st March 2022There was hope in market pricing earlier in the week that some sort of resolution over Ukraine could be sought soon. But those hopes faded when Russia started bombing regions it had indicated it would pull back from. Today, oil prices are back up and US equities have been hit hard. It’s not all down to Ukraine though. Inflation rates in Germany and Spain are through the roof. As NAB’s David de Garis points out, they have risen more in a month than Australia has seen in a year. That presents a special challenge for the ECB, who have to control inflation in an environment where consumers will be facing a cost-of-living squeeze.

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