Financial Markets Daily Report
21 January 2022

Another volatile session with mixed results on Thursday, with the focus still on the potential impact of tighter monetary policy on rate-sensitive sectors. Investors are also monitoring the Q4 earnings results.

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  • Another volatile session with mixed results on Thursday, with the focus still on the potential impact of tighter monetary policy on rate-sensitive sectors. Investors are also monitoring the Q4 earnings results.
  • In the US, tech stocks continued to fall, despite a decline in the sovereign debt curve (8 p. b. to 1.8% for the 10-year bond benchmark). New weekly jobless claims rose more than expected (+286k, highest since mid-October).
  • In Europe, in contrast, equity prices rose while spreads in the sovereign bond market across the eurozone periphery tightened. ECB president Lagarde rejected calls to raise interest rates more quickly in response to record inflation. In this context, the EUR depreciated modestly against its peers, nearing the 1.13 threshold versus the USD.
  • In commodity markets, natural gas prices in Europe fell for a second day after two of China’s biggest state-owned importers of liquefied natural gas offered to resale some of its excess cargoes to Europe.
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