Morning Recap Wednesday 2 February 2022
Global Markets Update
U.S. MARKETS
Equity markets closed higher overnight, with both the S&P 500 and NASDAQ up +0.7% and Dow Jones up +0.8%. U.S. manufacturing growth lost a bit more steam in January with measures of production and new orders both dropping to the lowest since mid-2020.
Long-dated U.S. treasury yields were mixed, with the 2-Yr yield lower at 1.161% and the 10-Yr yield higher at 1.786%.
EUROPEAN MARKETS
European equity markets closed higher overnight, with Stoxx Europe 600 up +1.3% and U.K. FTSE 100 gaining +1.0%. German DAX gained +1.0%, after data revealed Germany’s unemployment declined by 48k in January, pushing the jobless rate down by -10bps to 5.1%.
ASIAN MARKETS
Asian equity markets closed higher overnight, with Nikkei 225 up +0.3% and all the Hang Seng, Shanghai Composite and KOSPI remaining closed for a holiday in observance of Lunar New Year. India doubled down on its spending commitment for FY22, targeting a budget deficit of 6.4% of GDP against a targeted 6.8% by borrowing a record 14.95 trillion rupees to bridge the shortfall, to spend on infrastructure, including roads, railways, airports, ports, public transport, waterways and logistics, as well as the green energy transition, digitalization, public health and social infrastructure, leading to forecasted FY22 growth of +9.2%, the quickest rate among major economies and +8-8.5% GDP expansion in FY23.
WTI oil is trading at US$88.32 a barrel. Iron ore price is at US$127.33 per ton. Spot gold is trading at US$1,802 per oz.
