Morning Insights Friday 18 February 2022
Global Markets Update
U.S. MARKETS
Equity markets closed lower overnight, with the S&P 500 down -2.1%, NASDAQ down -2.9% and Dow Jones down -1.8%, amid heightened concern over geopolitical risks after President Joe Biden warned that the probability of Ukraine’s invasion by Russia is still very high. Applications for U.S. state unemployment insurance unexpectedly rose in the week ended February 12. With initial jobless claims increasing 23k to 248k.
Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 1.468% and the 10-Yr yield at 1.962%.
EUROPEAN MARKETS
European equity markets closed lower overnight, with both the Stoxx Europe 600 and German DAX down -0.7% and U.K. FTSE 100 declining -0.9%, after ECB forecast euro-area growth is likely to remain subdued in 1Q22. As the current pandemic wave weighs on economic activity and inflation remains high. However, growth should rebound strongly over the course of 2022, driven by robust domestic demand.
ASIAN MARKETS
Asian equity markets closed mostly higher overnight, with the Hang Seng losing most of its gains to close +0.3% higher. After the U.S. added Chinese messaging platform WeChat and online marketplace AliExpress to its list of notorious markets for counterfeiting and piracy. An annual compilation of the worst intellectual-property abusers and counterfeiters. The Shanghai Composite was up +0.1% and KOSPI gained +0.5%. Nikkei 225 declined -0.8%, after Japan lowered its overall assessment of the economy for the first time in five months. Taking a gloomier view on the current state of the recovery and downgrading its view on consumer spending and housing construction, but raising its assessment of business investment.
WTI oil is trading at US$91.55 a barrel. Iron ore price is at US$120.47 per ton. Spot gold is trading at US$1,898 per oz.
