Morning Insights Wednesday 23 February 2022
Global Markets Update
U.S. MARKETS
Equity markets closed lower overnight with the S&P 500 down -1.0%. Dow Jones down -1.4% and NASDAQ declining -1.2%. With investors continuing their exit from risky assets as geopolitical tensions flared up after U.S. President Joe Biden joined the U.K. and Europe in announcing a new tranche of sanctions on Russia. Targeting Russia’s sale of sovereign debt abroad and the country’s elites. U.S. business activity bounced back in February from an 18-month low as a decline in Covid-19 cases rejuvenated demand, while inflationary pressures intensified leading to consumer confidence falling to the lowest since September amid softening expectations for growth and financial prospects.
Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 1.543% and the 10-Yr yield at 1.932%.
EUROPEAN MARKETS
European equity markets closed mostly higher overnight, with both the Stoxx Europe 600 and U.K. FTSE 100 up +0.1% and German DAX down -0.3%. German business confidence grew to highest since July 2020 in February. As the country moved past the worst of its latest Covid-19 outbreak.
ASIAN MARKETS
Asian equity markets closed lower overnight, with the Shanghai Composite down -1.0% and Hang Seng declining -2.7%, as concerns on China’s tech sector crackdown unnerved investors after China asked firms to check their financial exposure to Ant Group Co. KOSPI was down -1.3% and Nikkei 225 declined -1.7%.
WTI oil eased off earlier spikes and is trading at US$92.35 a barrel, after European and Russian diplomats agreed that negotiations over Iran’s nuclear program have reached the endgame. Iron ore price is at US$120.04 per ton. Spot gold is trading at US$1,899 per oz.
