Key insights
- Nagel's comment suggests potential intervention to calm markets amidst rising inflation fears fueled by geopolitical tensions and energy prices. This hints at possible coordinated central bank action, but the impact on US equities is slightly negative due to the underlying inflationary pressures and potential for further rate hikes.
PARIS, May 18 (Reuters) - The head of the German Central Bank Joachim Nagel said on Monday that central bankers can do "a lot more" to calm the financial markets and give them a positive momentum.
Nagel made the comments as he arrived for a meeting of Group of Seven finance ministers and central nakers in Paris.
Bonds from Tokyo to New York extended losses on Monday as rising energy prices from the ongoing Middle East war fanned inflation fears and stoked investor wagers on rate hikes from global central banks. [MKTS/GLOB]