Quarter in Review Q1 2022
- Quarter in review
- 28.09.23
<h3><strong>Key themes</strong></h3>
<p><strong>Russia-Ukraine crisis </strong>– volatility in financial markets</p>
<p><strong>Energy shock </strong>– spike in crude oil and natural gas</p>
<p><strong>Inflation – </strong>“transitory” no more <strong><br /><br /></strong></p>
<h3><strong>Markets snapshot</strong></h3>
<p>The <strong>MSCI AC World</strong> equity index fell -4.6% (-3.2% in €).</p>
<p>The <strong>US</strong> fell -5.2% (-3.1% in €).</p>
<p><strong>Europe </strong>fell -8.1% (-7.8% in €), underperforming as its proximity to the war in Ukraine and its exposure to Russian energy exports led to growth downgrades and higher inflation.</p>
<p><strong>Emerging markets</strong> were down -6.1% (-4.9% in €), the benchmark negatively impacted by its exposure to Russian assets.</p>
<p>The <strong>ICE BofA Merrill Lynch Eurozone > 5-year sovereign bond benchmark</strong> fell -7.2% over the quarter, the selloff following rising inflation readings and more inflation-focused central bank policy guidance.</p>
<p>The <strong>euro</strong> fell to 1.1082 against the US dollar.</p>
<p><strong>Commodities</strong> rose 33.1% (36.1% in €). <strong>Crude oil</strong> prices are up 33.3% year to date, Brent crude oil having peaked close to $140/bbl as the US and UK placed an embargo on Russian oil imports. <strong>European gas</strong> prices also spiked through the quarter, given Europe’s heavy reliance on Russia for gas imports.</p>
<p><strong>Gold</strong> rose 5.9% and was supported by safe-haven demand.</p>