Morning Recap Tuesday 25 January 2022
Global Markets Update
U.S. MARKETS
Equity markets closed higher overnight, with both the S&P 500 and Dow Jones up +0.3% and NASDAQ up +0.6%, however, sentiment remained weak amid rising geopolitical tensions with the U.S. ordering family members at its embassy in Kyiv to leave “due to the continued threat of Russian military action,” signaling a further turn of the screw in the standoff over Ukraine. U.S. business activity came close to stalling in January. With services PMI plummeting to the lowest level since July 2020 as labor shortages and employee absences weighed on activity and manufacturing PMI reporting the weakest reading since October 2020. As supply chains remained in disarray and hampered production.
Long-dated U.S. treasury yields were lower, with the 2-Yr yield lower at 0.965% and the 10-Yr yield higher at 1.774%.
EUROPEAN MARKETS
European equity markets closed lower overnight, with the Stoxx Europe 600 declining -3.8% to pierce below its 200-day moving average for the first time in nearly 15 months, sending a bearish technical signal, after data revealed Euro-area economic activity increased at its slowest pace in almost a year in January with composite PMI falling for a second straight month, as infections of the coronavirus’s omicron strain ripped through the services industry. German DAX was down -3.8% and U.K. FTSE 100 declined -2.6%.
ASIAN MARKETS
Asian equity markets closed mixed overnight, with the Shanghai Composite flat, with Chinese developers rallying, as the sector was boosted by news of asset sales and signs of improved access to funding. The Hang Seng was down -1.2%, KOSPI down -1.5% and Nikkei 225 gained +0.2%.
WTI oil is trading at US$83.82 a barrel. Iron ore price is at US$124.92 per ton. Spot gold is trading at US$1,843 per oz.
