US markets declined in the month, with the Dow Jones down -3.5% and S&P500 down -3.1%.
Long-dated U.S. treasury yields were higher, with the 2-Yr yield at 1.44% and 10-Yr yield lower at 1.83%.
EUROPEAN MARKETS
European markets declined with the Stoxx Europe 600 Index down -3.4% and German DAX down -6.55, as ECB forecast euro-area growth to remain subdued in 1Q22, and President Christine Lagarde no longer ruled out an interest-rate hike in 2022, agreeing a shift in policy guidance should materialize as soon as March with the bond buying expected to end in 3Q22. The UK FTSE declined 0.1%.
ASIAN MARKETS
Asian markets were mostly higher over the month, with the Shanghai Composite up +3%, as PBOC ramped up its short and medium term liquidity injection in the banking system and China’s Politburo vowed to strengthen macroeconomic policies to stabilise the economy this year. Nikkei was down -1.8% and KOSPI gained +1.4%.
COMMODITIES
Over the month, WTI oil price gained +10.7%, as sentiment buoyed by fears of sanctions on Russian oil and OPEC’s prediction that recovery in global oil demand could surpass its forecasts this year and grow by more than the 4.2m barrels a day, was partially offset by news of U.S. and its allies confirming release of about 60m barrels of crude from emergency stockpiles, OPEC+ ratifying the 400k barrel-a-day production increase scheduled for April, and EU and Russian diplomats agreeing that negotiations over Iran’s nuclear program have reached the endgame. Iron ore prices declined -7.2% whilst spot gold gained +6.2%.
The ASX200 gained +1.1%, after data revealed Australia’s economy rebounded strongly in 4Q21 from a virus-driven contraction, expanding +3.4% qoq (+4.2% yoy), driven by +6.3% jump in household spending.
