The SNB left its policy rate and interest on sight deposits at minus 0.75% and said it was retaining its expansionary monetary policy. However, it warned of risks to inflation due to the tight supply of raw materials, which could result in second-round effects on inflation.
The SNB also reiterated concerns about strength in property markets and said it would continue to monitor developments in mortgage and real-estate markets closely.
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The Norwegian krone pared gains against the euro after the Norges Bank raised interest rates as widely anticipated but said further increases will be gradual amid an uncertain outlook.
Norway's central bank lifted its benchmark rate 25 basis points to 0.75% and said the rate would most likely be raised further in June. However, it said uncertainty over the economic outlook and households' response to higher interest rates warrant a gradual rise in rates.
The bank said it was concerned about the prospect of the Ukraine war resulting in weaker-than-expected global growth and rising inflation.
Bonds:
In the current uncertain environment, where the war in Ukraine and sanctions against Russia will likely lead to a greater dispersion of growth and inflation outcomes among countries and regions, Pimco tends to favor portfolio flexibility and liquidity to respond to events and potentially take advantage of opportunities.
In fixed-income investments, Pimco expects to target modest duration underweights given current levels, the upside inflation risks, and the prospect for central bank tightening that prioritizes anti-inflation credibility over near-term growth concerns.
The asset manager also expects to de-emphasize curve positions, with the broad global tightening cycle now under way. Pimco continues to see Treasury Inflation-Protected Securities as a reasonably priced way to mitigate upside U.S. inflation risks.
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Eurozone government bond yields traded directionless with event risks looming, Mizuho's rates strategists said.
The EU Council's summit might bring a new round of sanctions against Russia, which would increase the upside pressure that energy markets are already under, the strategists said.
In terms of economic data, preliminary eurozone purchasing managers data for March are expected to decline, according to The Wall Street Journal's poll. Mizuho's rates strategists also expect a softening of the eurozone PMIs to emphasize downside risks to growth.
Commodities:
Oil ticked higher in Europe, caught between supply fears and the prospect of an Iran deal, after a U.S. official said progress had been made in talks over Tehran's nuclear ambitions, according to a Reuters report.
That lifted hopes Iranian crude could flow back to global markets, easing some of the tightness resulting from Russian supplies lost following the invasion of Ukraine. Still, fears that fresh sanctions could hit Russian oil exports remain.
SPI Asset Management said Iran's roughly 1.3 million barrels a day "would hit the oil price under normal circumstances but represents only a fraction of what might be lost from Russia."
Read Barrons.com: OPEC+ Isn't Going to Fling Open the Oil Taps. Filling Your Gas Tank Will Cost More
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Nickel prices jumped by their maximum daily limit on supply disruption worries after Vladimir Putin's request that Russian gas exports be paid for in rubles prompting fears that other commodities could face similar measures, said ANZ. Benchmark nickel prices on the LME rise by 15% to $37,235 a metric ton.
The nickel market is still reeling from an unprecedented rise in prices which led the LME to halt trading for days and impose daily price limits.
The volatility is prompting investors to close their nickel positions and steer clear of the metal altogether until the market cools, reducing liquidity and potentially exacerbating sharp price moves, ANZ said.
EMEA HEADLINES
Biden Meets NATO Allies Seeking More Support for Ukraine
BRUSSELS-President Biden met with NATO leaders Thursday to agree on new measures to help Ukraine battle Russia's invasion and address growing concerns Moscow might use chemical, biological or other unconventional weapons in its monthlong war.
The North Atlantic Treaty Organization's emergency summit is the first in a day-long string of gatherings Mr. Biden has planned with European allies and other world leaders, as they map out their next steps helping Ukraine defend against the attack launched last month by Russian President Vladimir Putin.
War in Ukraine Forces European Bulls to Unwind Bets
European stock indexes have largely clawed back losses suffered since President Vladimir Putin sent Russian troops into Ukraine. That doesn't necessarily mean traders are feeling optimistic.
Investors around the world say they are still looking skeptically at investing within the European continent, even though the pan-continental Stoxx Europe 600 is now hovering almost exactly where it closed the day before the invasion. The euro, meanwhile, has rebounded slightly from the nearly two-year low the currency reached earlier this month, closing Wednesday around $1.10.
Eurozone's Economic Activity Slowed in March Amid War in Ukraine, PMIs Signal
The eurozone economic recovery lost pace in March as high energy prices and uncertainty from the war in Ukraine dented growth in both manufacturing and services sectors, according to a purchasing managers survey.
In its first release since the outbreak of the war in Ukraine, the S&P Global Flash Composite Output Index decreased to 54.5 in March from 55.5 in February, a two-month low but topping the 53.3 consensus forecast in a poll by The Wall Street Journal.
Renault Suspends Moscow Plant Operations, Cuts 2022 Outlook
Renault SA said late Wednesday that it has suspended activities at its manufacturing plant in Moscow and cut its financial outlook for the year.
The French auto maker said it is currently assessing options for its stake in Russian manufacturing company Avtovaz, and expects to record an accounting charge in its first-half results related to the value of its Russian assets. This value amounted to 2.20 billion euros ($2.42 billion) as of Dec. 31.
Daimler Truck Shares Climb After 2021 Results, Bullish Outlook
Shares in Daimler Truck Holding AG traded sharply higher Thursday after the company said that it met its targets for 2021 boosted by market recovery and cost measures, and that it expects sales to grow this year despite supply-chain bottlenecks.
At 0815 GMT, Daimler Truck shares were trading 6.3% higher at EUR25.52.
Next Says FY 2022 Pretax Profit Rose Ahead of Views But Lowers Guidance
Next PLC reported Thursday a rise in pretax profit for fiscal 2022 ahead of management views, said it has lowered its sales and profit guidance for fiscal 2023 due to the effects of Russia's invasion of Ukraine.
The FTSE 100 clothing retailer posted a pretax profit of 823.1 million pounds ($1.09 billion ) for the year ended Jan. 30 compared with GBP342.4 million. The figure also represented a 10% rise from fiscal 2020, which was unaffected by the coronavirus pandemic.
Steel Giant Set to Be First Major Russian Debt Default of Ukraine War
Steel and mining giant Severstal PAO said Citigroup Inc. has frozen interest payments to investors in the company's bonds, setting up what would likely be the first debt default by a major Russian issuer since Moscow invaded Ukraine.
Vladimir Putin Wants Europe to Pay for Gas in Rubles
Russian President Vladimir Putin said he wants his country to only accept rubles in gas deals with European countries and other customers, adding a new financial dimension to tensions over energy supplies while the war in Ukraine rages.
Mr. Putin said Russia would refuse to accept payment for natural-gas supplies in currencies "that have compromised themselves," including dollars and euros, and will switch to payments in rubles, state newswire TASS reported.
NATO Estimates Steep Russian Losses in Ukraine as Biden Arrives in Europe
NATO estimated Russia has lost as much as one-fifth of its combat forces sent to Ukraine in about a month of fighting as President Biden and alliance leaders gathered in Brussels for a summit to discuss providing further support to Kyiv to repel the Russian invasion.
Between 7,000 and 15,000 Russian soldiers have been killed in Ukraine and up to 40,000 Russian troops in total have been killed, wounded, taken prisoner or are missing, said a senior military official from the North Atlantic Treaty Organization. Russia may also have lost 10% of its equipment, impairing Moscow's ability to maintain its pace of operations, said another NATO official.
Olam Food Ingredients Delays London IPO
Olam Group Ltd. has pushed back the listing of its food-and-beverage ingredients business on the London Stock Exchange, the company said Thursday, citing volatile market conditions.
Due to the war in Ukraine and resultant impact on the market, Olam Food Ingredients' initial public offering won't take place in the second quarter of this year, Singapore-listed Olam said.
GLOBAL NEWS
War in Ukraine Forces European Bulls to Unwind Bets
European stock indexes have largely clawed back losses suffered since President Vladimir Putin sent Russian troops into Ukraine. That doesn't necessarily mean traders are feeling optimistic.
Investors around the world say they are still looking skeptically at investing within the European continent, even though the pan-continental Stoxx Europe 600 is now hovering almost exactly where it closed the day before the invasion. The euro, meanwhile, has rebounded slightly from the nearly two-year low the currency reached earlier this month, closing Wednesday around $1.10.
Fertilizer Prices Surge as Ukraine War Cuts Supply, Leaving Farmers Shocked
In his nine years selling fertilizer to corn and rice farmers in West Africa, Malick Niang says he has never seen such a severe supply crunch-or such high prices.
(MORE TO FOLLOW) Dow Jones Newswires
03-24-22 0655ET
