Morning Recap Wednesday 9 February 2022
Global Markets Update
U.S. MARKETS
Equity markets closed higher overnight, with the S&P 500 up +0.8%, NASDAQ up +1.3% and Dow Jones up +1.1%. U.S. small business optimism declined in January to the lowest since February 2021 amid inflation concerns, with a record share of U.S. small businesses raising their prices in the month to combat high costs of materials and labor.
Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 1.339% and the 10-Yr yield at 1.958%.
EUROPEAN MARKETS
European equity markets closed mixed overnight, with Stoxx Europe 600 erasing earlier gains to close flat as rising bond yields weighed on technology shares amid increasingly hawkish central banks, while falling oil on a potential de-escalation in tension over Ukraine and the resumption of Iran nuclear talks, pressured energy equities. The U.K. FTSE 100 declined -0.1% and German DAX closed +0.2% higher.
ASIAN MARKETS
Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +0.7%, with property stocks surging after China eased a year-long cap on loans for the real estate sector to fund public rental housing. The Hang Seng declined -1.0%, as sentiment took a hit after U.S. Department of Commerce added 33 Chinese firms to its unverified list. Both KOSPI and Nikkei 225 gained +0.1%.
WTI oil is trading at US$89.54 a barrel. Iron ore price is at US$132.50 per ton. Spot gold is trading at US$1,826 per oz.
