The war in Ukraine and soaring energy prices are weighing on the morale of economic agents while driving up inflation.
The economy will set the tone on the financial markets | Photo credits: iStock
Confidence, inflation, growth… This Wednesday’s economic meetings will be closely scrutinized by financial analysts, whose main fear today is that of a slippage in consumer and producer prices and an economy tipping into recession. At the end of the morning, investors will take note of the indices of business climate and household confidence in the euro area in March.
Released last week, the preliminary consumer sentiment survey showed some impact from the Ukrainian crisis and soaring prices, with the statistic dropping to -18.7. It should be confirmed at this level on Wednesday. The business climate index should drop by 5 points to 119. On the inflation side, things are not calming down, quite the contrary. The preliminary index of consumer prices in Germany should rally to a new peak of +6.8% over one year, against 5.5% in February, under the effect of soaring energy prices (particularly gas), transport costs and certain services .
Between ADP and GDP in the United States
On the other side of the Atlantic, it is impossible to overlook the statistics of the day. At the beginning of the afternoon, the operators will be interested in the investigation of the human resources firm ADP on job creations in the private sector in March (consensus: 450,000) and at the third estimate of GDP growth in the fourth quarter of 2021 (consensus: +7.1% at an annualized rate). Finally, at 4.30 p.m., they will analyze the evolution of weekly oil stocks.
On the values front, Aegis, Exclusive Networks, LNA Health, Nanobiotix, Synergy and Theraclion will publish their annual results, while claranova will unveil its accounts for the first half of 2021-2022.
PC