Morning Recap Tuesday 8 February 2022
Global Markets Update
U.S. MARKETS
Equity markets closed mostly lower overnight, with the S&P 500 down -0.4%, NASDAQ down -0.6% and Dow Jones closing flat, after a new study from the Federal Reserve Bank of San Francisco showed maximum employment in the U.S. will remain out of reach for now, as two key U.S. labor-market metrics, the labor-force participation rate and the employment-to-population ratio, may take until 2024 to recover to their pre-pandemic growth trend, as aging population continues to keep both series well below trend.
Long-dated U.S. treasury yields were mixed, with the 2-Yr yield lower at 1.294% and the 10-Yr yield higher at 1.921%.
EUROPEAN MARKETS
European equity markets closed higher overnight, with Stoxx Europe 600 up +0.7%, after ECB President Christine Lagarde pledged gradual adjustment to monetary policy. The U.K. FTSE 100 gained +0.8% and German DAX closed +0.7% higher.
ASIAN MARKETS
Asian equity markets closed mixed overnight, with the Hang Seng flat. After Hong Kong reported a record number of coronavirus infections, with cases doubling every three days. Shanghai Composite was up +2.0%, KOSPI down -0.2% and Nikkei 225 declined -0.7%.
WTI oil declined -0.9% and is trading at US$91.52 a barrel, after the U.S. signed several waivers related to Iran’s civilian nuclear activities to ease diplomatic efforts, with the Diplomats now set to return to Vienna on Tuesday to resume Iran nuclear negotiations. Iron ore price is at US$132.50 per ton. Spot gold is trading at US$1,821 per oz.
