Financial Markets Daily Report25 January 2022
Investors started the week with a pronounced risk-off mood and demand for safe assets rose amid rising geopolitical tensions between Russia and Ukraine. In stock markets, volatility went up and losses were broad-based across the board, although dip buyers pushed US indices back to positive territory late in the session.
- Investors started the week with a pronounced risk-off mood and demand for safe assets rose amid rising geopolitical tensions between Russia and Ukraine. In stock markets, volatility went up and losses were broad-based across the board, although dip buyers pushed US indices back to positive territory late in the session.
- In fixed income markets, the yield on the German 10-year sovereign bond edged down and returned to -0.10% while the yield on the 10-year US Treasury ticked up to 1.77%. In FX markets, the US dollar strengthened against most advanced and emerging economies' currencies and the euro fluctuated above $1.13.
- Services PMIs slowed down in January in most advanced economies due to the spread of Omicron, while manufacturing indices performed slightly better. According to Markit press releases, there are modest signs of moderating supply bottlenecks in the euro area. Today, the IFO business survey will be released in Germany.