Market Overview – March 2022

Inflationary fears fanned by the sound of cannons · 9 March 2022

This month, we have witnessed two events likely to generate significant changes in geopolitics and investment. One is the increase in inflation, and the other is the Russian invasion of Ukraine.  At the beginning of the month, macroeconomic figures confirmed the strength of inflation. Investors continued to bet on a faster monetary tightening by testing the credibility of central bankers. Rising rates will have a significant impact on the economy and investment strategies. At the end of the month, the worst-case scenario of a Russian invasion of Ukraine came to fruition. It had an immediate impact on commodity prices. This sudden increase will contribute, in the short term, to support a high level of inflation. Unprecedented economic sanctions have hit Russia extremely hard, wiping out much of its wealth. The Russian stock market fell by 38% on the invasion day. This was the most significant drop in any country's stock market index history. However, on the same day, the U.S. technology market (Nasdaq) ended up sharply by more than 3%, demonstrating the difficulty of predicting the impact of major geopolitical events on the financial markets. 

Market Overview - March 2022 Survol des marchés - Mars 2022