US markets declined, with the Dow Jones down -3.3% and S&P 500 down -5.3%, as investors continued to reprice assets to account for the Fed’s pivot to restrictive policy, with the Fed holding the target range for its benchmark policy rate unchanged at 0-0.25% as expected, however declaring it will conclude asset purchases on schedule in early March and will soon be ready to raise the target range for the federal funds rate and commence the process of balance-sheet reduction thereafter, citing inflation well above its 2% target and a strong job market.
Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 1.175% and 10-Yr yield lower at 1.78%.
EUROPEAN MARKETS
European markets were mostly lower with the Stoxx Europe 600 Index down -3.9%, UK FTSE up 1.1% and German DAX down -2.6%.
ASIAN MARKETS
Asian markets were lower, with the Nikkei 225 down -6.2%, KOSPI down -10.6% and the Shanghai Composite down -7.7%.
COMMODITIES
WTI oil price gained +17.7%, despite OPEC+ agreeing to increase production by 400k barrels a day for March, as markets remained fearful of a potential shortfall amid lack of investment or militia unrest taking a toll on exporters from Nigeria to Libya, and IEA’s warning that market looks tighter than previously thought, with demand proving resilient to Omicron. Iron ore increased +11.6%, whilst spot gold declined -1.8%.
