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Written by Charles-Henry Monchau | Apr 23, 2022 4:13:00 PM

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WEEKLY SUMMARY: BONDS & STOCKS BLOODBATH

The major U.S. equity indexes ended the week lower with the communication services sector pulling back the most. Shares of Netflix tumbled more than 35% during the week, as the streaming company reported disappointing quarterly results, including a sequential decline in its global subscribers. Only the consumer staples sector ended in positive territory. Fed policymakers' hawkish tone weighed on investors’ sentiment. James Bullard, president of the St. Louis Fed, indicated that a rate increase of as much as 75 basis points has been discussed. At an IMF event, Fed Chair Jerome Powell said a 50-basis-point rate increase could be “on the table” for the May 3‒4 policy meeting and stated that “it is appropriate…to be moving a little more quickly.” Meaningful increases in short- and intermediate-term U.S. Treasury rates resulted in a flatter yield curve. Shares in Europe fell amid ongoing concerns about the war in Ukraine and increased hawkishness among central bank policymakers. The STOXX Europe 600 Index ended 1.4% lower. Ahead of the French Presidential elections second round, the German chancellor and the prime ministers of Spain and Portugal urged a vote in favor of Macron in a joint article in the Le Monde newspaper. In Asia, the yen was hovering around a two-decade low against the U.S. dollar. Chinese markets slide as investors worried about the economic fallout from covid lockdowns after officials said tough restrictions would remain in place.