Financial Markets Daily Report05 January 2022
Financial markets extended gains on Tuesday as investors continued to bet that the ongoing economic recovery could sustain the spike in COVID infections across the world.
- Financial markets extended gains on Tuesday as investors continued to bet that the ongoing economic recovery could sustain the spike in COVID infections across the world.
- On the data front, the ISM manufacturing report for the US showed a decline in the price and supplier deliveries’ components, both signaling some easing of the supply chain disruptions. In Germany, retail sales surprised to the upside, up by 0.6% m/m in November, while in China, the manufacturing PMI returned to expansionary territory.
- The risk-on sentiment fueled a further rise in equity prices in Europe and across emerging markets. In the US, a decline in tech stocks dampened the upswing in other sectors. In commodity markets, the OPEC+ decided to keep its output policy unchanged, aiming for an additional 400k barrels per day of oil supplied in February.
- Today the final PMIs for the service sector will be released, as well as the minutes of the December’s Fed meeting.