Financial Markets Daily Report 19 January 2022

On Tuesday investors traded with a risk-off mood as they took position ahead of the release of key reports for the Q4 earning season this week and the first monetary policy meeting by the Fed on 25-26 January.

FMDR
  • On Tuesday investors traded with a risk-off mood as they took position ahead of the release of key reports for the Q4 earning season this week and the first monetary policy meeting by the Fed on 25-26 January.
  • Stocks fell markedly in both Europe and the US, with tech shares leading the retreat amid concerns about surging financing costs. In the sovereign debt market, the yields for the US and German bonds rose further across the curve, with the 10-year benchmarks at the highest levels since the start of the crisis.
  • In FX markets, the USD appreciated against the EUR, nearing the 1.13 level. The Japanese Yen also appreciated, following the upward revision by the Bank of Japan of its inflation outlook.
  • Commodity prices continued to trade higher, driven by concerns among investors of escalating geopolitical risks. The price of the barrel of Brent fluctuated above $87 while European gas prices moderated.
     
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