Morning Recap Wednesday 12 January 2022

Global Markets Update    



Equity markets closed higher overnight, with the S&P 500 up +0.9%, NASDAQ up +1.4% and Dow Jones up +0.5%. Stocks climbed after Fed Chief, Jerome Powell told the Senate Banking Committee that officials would not hesitate to act if required to contain price pressures, stating “if we have to raise interest rates more over time, we will”, whilst at the same time, highlighting that the U.S economy was in a stronger position than the last time the central bank shrank its balance sheet.

Long-dated U.S. treasury yields were lower, with the 2-Yr yield lower at 0.895% and the 10-Yr yield higher at 1.739%.


European equity markets saw the most gains in two weeks at the close of trading, as investors returned to buy the dip in risk assets as rising bond yields continued to cause volatility. The Stoxx Europe 600 up +0.8%, with 19 out of 20 sectors seeing gains, whilst the German DAX was also up +1.1% and U.K. FTSE gaining +0.5%.


Asian equity markets saw largely weaker to flattish results at the close with investors selling off high growth tech shares on concerns over U.S monetary policy. The Hang Seng and KOSPI both flat, and the Shanghai Composite declining -0.7%, and Nikkei 225 closing -0.9% down.

WTI oil is trading at US$81.45 a barrel. Iron ore price is at US$117.32 per ton. Spot gold is trading at US$1,823 per oz.


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