For the month of February 2022, the ETF flow breakdown was 30%-70% between equity and fixed income respectively. The conflict between Russia and Ukraine - from tension to invasion - is dragging commodities prices higher. The barrel now trades above $100 and wheat gained 41% since mid February. Inflation is under pressure and central banks will have to act cautiously. Safe-haven assets are in demand. Gold crossed above $1900 and the German 10Y yield declined in to negative territory. The Fed’s plan remains extant – the rate raise is due on the 15-16 of March.
Equity Indices: STOXX 600 BAMK: -9.30%, NDX: -4.64%, MSCI EUROPE: -3.15%, MSCI WORLD: -2.65%, SPX: -3.14%,
Bonds: German 10Y yield: +12.4bps, US10Y Yield: +4.83bps
Commodities: Gold: +14.245%, Oil: +10.72%, Wheat: +21.89%
From a regional perspective, UK, Japan, emerging equity indices were bought, while International DM, US and European equity indices were sold. On the fixed income side, Euro and US bonds were in demand as well as inflation linked indices.