Wednesday 19th January 2022 : Markets in the red as Treasuries gain

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Global Markets:

  • Asian Stock Markets : Nikkei down 2.80%, Shanghai Composite down 0.33%, Hang Seng down 0.29%, ASX down 1.03%
  • Commodities : Gold at $1812.35 (0.00%), Silver at $23.61 (+0.49%), Brent Oil at $87.79 (+0.32%), WTI Oil at $85.28 (+0.53%)
  • Rates : US 10-year yield at 1.884, UK 10-year yield at 1.214, Germany 10-year yield at 0.005

News & Data:

  • (GBP) CPI y/y 5.40% vs 5.20% expected
  • (USD) Empire State Manufacturing Index -0.7 vs 25 expected
  • (EUR) German ZEW Economic Sentiment 51.7 vs 32.1 expected
  • (EUR) ZEW Economic Sentiment 49.4 vs 29.2 expected
  • COVID-19-Related Bankruptcies Total 1,770 in Japan in 2021

Markets Update:

Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues overnight from Wall Street, as US Treasury yields surged higher amid expectations the Federal Reserve will start hiking interest rate as soon as March. Lingering worries about the surge in cases of the Omicron variant of the coronavirus in several countries contribute as well to the bearish mood in the market.

Hong Kong’s Hang Seng index traded near flat while the tech-focused Hang Seng Tech index fell 0.1%. Chinese mainland shares struggled for gains: The Shenzhen component was down 1.2% while the Shanghai composite fell 0.3%. The Australian stock market is modestly lower on Wednesday, extending the losses in the previous session, with the benchmark S&P/ASX 200 falling below the 7,400 level. The Japanese stock market is sharply lower on Wednesday with weakness in exporters, technology and financial stocks.

Oil prices hit their highest since 2014 amid an outage on a pipeline from Iraq to Turkey and global political tensions, stoking fears of inflation becoming more persistent and propping up the dollar, which hovered near one-week highs

Upcoming Events:

  • 01:30 PM GMT – (CAD) CPI m/m
  • 01:30 PM GMT – (CAD) Common CPI y/y
  • 01:30 PM GMT – (CAD) Median CPI y/y
  • 01:30 PM GMT – (CAD) Trimmed CPI y/y
  • 02:15 PM GMT – (GBP) BOE Gov Bailey Speaks