Morning Insights Wednesday 16 February 2022
Global Markets Update
U.S. MARKETS
Equity markets closed higher overnight, with the S&P 500 up +1.6%, NASDAQ up +2.5% and Dow Jones gaining +1.2%. Prices paid to U.S. producers jumped in January by more than forecast with PPI for final demand increasing +9.7% yoy (+1.0% MoM), pointing to persistent inflationary pressures as companies contend with supply-chain and labor constraints.
Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 1.577% and the 10-Yr yield at 2.052%.
EUROPEAN MARKETS
European equity markets closed higher overnight, with Stoxx Europe 600 up +1.4% and U.K. FTSE 100 up +1.0%. German DAX gained +2.0%, after data revealed investor confidence in Germany’s economic recovery improved further in February, as the country edges closer to loosening its coronavirus restrictions.
ASIAN MARKETS
Asian equity markets closed lower overnight. W ith the Shanghai Composite down -1.0%, Hang Seng down -1.4%, KOSPI down -1.6% and Nikkei 225 declining -2.2%, as rising oil price sparked inflation concerns. India’s retail inflation breached the upper end of RBI’s 2-6% target range for the first time in seven months in January, with CPI rising +6.01% yoy, driven by rising cost of food and fuel.
WTI oil is trading at US$94.96 a barrel. Iron ore price is at US$135.87 per ton. Spot gold is trading at US$1,872 per oz.
