No peace at sight, financial turmoil continues

The fourth round of peace talks between Russia and Ukraine ended abruptly and without an agreement on ceasefire or humanitarian corridors. International sanctions on Russia pile up, but Moscow shows no signs of giving up after fifteen days.

The European Central Bank announced its monetary policy decision. As widely anticipated, rates were left unchanged. However, Lagarde announced a twist in their Asset Purchase Program (APP) that is now set to end in the third quarter of this year. The APP will amount to 40 billion euros in April, 30 billion euros in May and 20 billion euros in June.

President Christine Lagarde noted that Moscows invasion of Ukraine is a watershed for Europe and is now a new downward risk, repeating they “will do everything within our mandate to pursue price stability.” The central bank downwardly revised its growth forecasts.

The US released the February Consumer Price Index, which printed at 7.9% YoY as expected, still its highest in 40 years. The headline put pressure on Wall Street, already weighed by geopolitical turmoil. US indexes remain in the red heading into the close but managed to trim half of their early losses.

The yield of the US 10-year Treasury note hit 2.02% and heads into the close at around 2.0%.

Gold finishes the day unchanged, trading a few bucks below the $2,000 threshold. Crude oil prices eased, with WTI now changing hands at around $106.20 a barrel. Oil decline was attributed to comments from Russian President Vladimir Putin, who said that Moscow would keep its energy-related commitments.