Financial Markets Daily Report04 January 2022
Investors traded with a risk-on mode during the first session of the year, extending recent gains while shrugging off a further deterioration in the number of COVID daily infections across the world.
- Investors traded with a risk-on mode during the first session of the year, extending recent gains while shrugging off a further deterioration in the number of COVID daily infections across the world.
- In particular, the US recorded more than 1 million new COVID cases, a new record high worldwide, while infections rose further across Europe and Asia. The impact on the health systems, however, remains relatively contained relative to previous waves of infections.
- Stock market extended their gains, as investors bet the ongoing economic recovery could weather the jump in cases as well as the gradual withdrawal of monetary policy stimulus. Yields on sovereign bonds picked up in both sides of the Atlantic, commodity prices rose while the EUR hovered around 1.13 against the USD.
- The key data this week are the eurozone HICP flash inflation and the US payroll report, both released on Friday.