Morning Recap Thursday 13 January 2022

Global Markets Update    



Equity markets closed higher overnight, with the S&P 500 up +0.3%, NASDAQ up +0.2% and Dow Jones up +0.1%. U.S. consumer prices soared last year by the most in 39 years. With CPI climbing +7% yoy in 2021, the largest 12-month gain since June 1982. According to Fed’s Beige Book survey, the U.S. economy grew at a modest pace in the final weeks of 2021. But businesses’ expectations for growth over the next several months have cooled in some places.

Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.907% and the 10-Yr yield flat at 1.734%.


European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.6%, German DAX up +0.4% and U.K. FTSE gaining +0.8%, amid tentative signs that the latest flare up of the pandemic is abating with Switzerland joining Spain and the U.K. in suggesting that the coronavirus pandemic may be shifting to an endemic phase.


Asian equity markets closed higher overnight, with the Shanghai Composite up +0.8%, after data revealed China’s inflation pressures moderated in December with PPI rising +10.3% yoy, down from November’s +12.9% yoy, and CPI increasing +1.5% yoy, compared with +2.3% yoy in November, giving the central bank scope to cut interest rates to cushion the economy’s downturn. The Hang Seng was up +2.8% and KOSPI gained +1.5%. Nikkei 225 gained +1.9%, after BOJ raised its economic assessment of all the country’s regions for the first time since October 2013, revised up its assessment of consumer spending in all nine areas for the first since it began to issue the report in 2005 and reported a measure for the current sentiment among merchants has edged up to the highest in 16 years.

WTI oil is trading at US$82.75 a barrel. Iron ore price is at US$117.67 per ton. Spot gold is trading at US$1,827 per oz.


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