Morning Recap Tuesday 1 February 2022
Global Markets Update
U.S. MARKETS
Equity markets closed higher overnight, with the S&P 500 up +1.9%, Dow Jones up +1.2% and NASDAQ closing +3.4% higher.
Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 1.175% and the 10-Yr yield at 1.777%.
EUROPEAN MARKETS
European equity markets closed mostly higher overnight, with the Stoxx Europe 600 up +0.7%, after data revealed euro-area economy grew modestly in 4Q21 with GDP rising +0.3% qoq (+4.6% yoy), as a sharp contraction in output that left Germany on the brink of recession was more than offset by stronger-than-expected growth in France and Spain amid a ramp-up in investment. German DAX gained +1.0% and U.K. FTSE 100 closed flat. German inflation slowed significantly less than expected in January with CPI rising +5.1% yoy under a EU-harmonized measure. With soaring energy prices and pressure on the cost of services partly offset by temporary cut in value-added tax.
ASIAN MARKETS
Asian equity markets closed higher overnight, with both the Hang Seng and Nikkei 225 up +1.1%. And both Shanghai Composite and KOSPI closed for a holiday. Manufacturing activity in China weakened in January with official PMI slipping to 50.1 from 50.3 in December. As the resurgence of COVID-19 cases dampened activity within the country’s goods-producing sector during the month. And activity within China’s services and construction sector also slowed down with official non-manufacturing PMI easing to 51.1 from 52.7 in December. As the lingering pandemic affected activity within the railway, road and water transportation, as well as the postal service sector. Japan’s consumer sentiment fell by the biggest margin since the height of the pandemic crisis in January, as Covid infections rocketed with the spread of the omicron variant and as inflation expectations continued to tick up.
WTI oil is trading at US$88.30 a barrel. Iron ore price is at US$127.33 per ton. Spot gold is trading at US$1,800 per oz.
