Morning Insights Monday 21 February 2022
Global Markets Update
U.S. MARKETS
Equity marketsclosed lower on Friday, with both the S&P 500 and Dow Jones down -0.7% and NASDAQ down -1.2%, amid worries about the Federal Reserve’s next policy steps with Chicago Fed President Charles Evans and his New York counterpart John Williams implicitly reinforcing the message that the U.S. central bank will raise rates by a quarter point at its March meeting.
Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 1.465% and the 10-Yr yield lower at 1.923%.
EUROPEAN MARKETS
European equity markets closed lower on Friday, with the Stoxx Europe 600 down -0.8%, German DAX down -1.5% and U.K. FTSE 100 declining -0.3%, amid concerns over tensions between the West and Russia with the U.S. warning Russia has massed as many as 190,000 personnel in and around Ukraine, calling it the most-significant military mobilization since World War II. U.K. retail sales bounced back in January, increasing +1.9% MoM. The biggest monthly increase since April 2020, driven by a pick up in spending on household goods and at garden centers. As the impact of the omicron variant on consumers ebbed.
ASIAN MARKETS
Asian equity markets closed mixed on Friday, with the Hang Seng down -1.9%. As sentiment was eroded by renewed worries over China’s regulatory crackdown on industries. After China issued new guidelines asking food-delivery platforms to cut fees for restaurants. The Shanghai Composite was up +0.7%, KOSPI flat and Nikkei 225 declined -0.4%. Japan’s key inflation measure weakened in January with CPI excluding fresh food slowing to +0.2% yoy from +0.5% yoy in prior month. Offering support for the BOJ’s view that price growth is still too feeble to consider pulling back its stimulus measures.
WTI oil is trading at US$91.77 a barrel. Iron ore price is at US$119.06 per ton. Spot gold is trading at US$1,899 per oz.
