Weekly Extract 10/01/2022
Weekly Summary January 3 - 7
- The U.S. equity market closed its first week of the year in negative territory, the index with the largest drop was the NASDAQ (-4.5%), which had its worst week since February 2021. The other two indices both the S&P 500 and the Dow Jones also closed negative, with the Dow Jones being the least affected with a drop of only -0.29%.
- In contrast, European markets, which while having closed Friday in the red, their week's total was positive, with the UK's FTSE100 (+1,11%) seeing the strongest growth of all.
- A more hawkish tone from Powell and the Fed means a more aggressive approach to tapering purchases and raising interest rates, the latter reflected in Fed funds rate futures, which show a possibility of the first major rate hike in March of this year.
- The expected job creation data has caused a negative surprise in the market. The creation of 199,000 jobs last month, has fallen far short of analysts' expectations (more than 400,000 new jobs were expected). The unemployment rate, on the other hand, fell to 3.9 1Q3Q, a figure that puts it at its lowest level since February 2020 and is better than experts had estimated.
- The euro zone inflation rate rose to 5% at the end of December. It is worth noting that inflation at a global level has increased with the disruption of supply chains caused by the pandemic and hikes in energy prices among other factors.
| AMERICA | QUOTE | Δ%5Días | Δ%YTD |
|---|---|---|---|
| DOW JONES INDUS. AVG | 36.231,66 | -0,29% | -0,29% |
| S&P 500 INDEX | 4.677,03 | -1,87% | -1,87% |
| NASDAQ COMPOSITE | 14.935,90 | -4,53% | -4,53% |
| EUROPE | QUOTE | Δ%5Días | Δ%YTD |
|---|---|---|---|
| Euro Stoxx 50 Pr | 4.305,83 | 0,17% | 0,17% |
| FTSE 100 INDEX | 7.485,28 | 1,11% | 1,36% |
| CAC 40 INDEX | 7.219,48 | 0,93% | 0,93% |
| DAX INDEX | 15.947,74 | 0,40% | 0,40% |
| IBEX 35 INDEX | 8.751,80 | 0,44% | 0,44% |
| SWISS MARKET INDEX | 12.797,94 | -0,60% | -0,60% |
| ASIA | QUOTE | Δ%5Días | Δ%YTD |
|---|---|---|---|
| NIKKEI 225 | 28.478,56 | -1,48% | -1,09% |
| HANG SENG INDEX | 23.493,38 | 0,41% | 0,41% |
| CSI 300 INDEX | 4.822,37 | -2,01% | -2,39% |
| BONUS | QUOTE | Δ%5Días | Δ%YTD |
|---|---|---|---|
| US Generic Govt 10 Yr | 1,76 | 16,68% | 63,22% |
| US Generic Govt 2 Yr | 0,86 | 17,74% | 529,73% |
| GERMANY GOVT BND 10 YR DBR | 0,04 | 75,57% | 91,76% |
| UK Gilts 10 Yr | 1,18 | 21,31% | 314,79% |
| COMMODITIES | QUOTE | Δ%5Días | Δ%YTD |
|---|---|---|---|
| WTI | 78,90 | 4,91% | 4,91% |
| BRENT | 81,84 | 5,22% | 5,22% |
| NATURAL GAS | 3,92 | 4,99% | 4,99% |
| CORN | 606,75 | 2,28% | 2,28% |
| WHEAT | 758,50 | -1,59% | -1,59% |
| GOLD $/Oz | 1.797,40 | -1,71% | -1,71% |
| SILVER $/OZ | 22,41 | -4,04% | -4,04% |
| COPPER | 441,00 | -1,20% | -1,20% |
| PLATINUM | 962,20 | -0,68% | -0,68% |
| COINS | QUOTE | Δ%5Días | Δ%YTD |
|---|---|---|---|
| EURUSD | 1,13 | -0,25% | -0,09% |
| AUDUSD | 0,72 | -1,30% | -1,13% |
| CADUSD | 0,79 | 0,09% | 0,03% |
| CHFUSD | 1,09 | -0,81% | 0,69% |
| GBPUSD | 1,35 | 0,24% | 0,41% |
| CNYUSD | 0,16 | -0,24% | 0,34% |
| JPYUSD | 0,01 | -0,68% | 0,36% |
| USDBRL | 5,69 | 2,08% | -1,04% |
| USDMXN | 20,50 | 0,20% | 0,63% |
| USDCOP | 4.033,05 | -0,12% | 0,72% |
| XBTUSD | 43.120,88 | -8,83% | -9,91% |
To keep in mind during the week
- Investors are interested in inflation data, whether companies believe the supply chain bottlenecks that contributed to last year's price increases will be reduced in the coming months and the outlook for 2022.
- Wednesday's consumer price inflation data is expected to show headline CPI topping 7% year-over-year, rapidly approaching a four-decade high, with the underlying rate rising well above 5% on an annual basis.
- Investors are keeping a close eye on movements in Treasury yields, which have been showing a very strong rally in recent weeks. The market is apparently discounting the Federal Reserve's first interest rate hike since the pre-pandemic era.
- Attention will also be focused on Jerome Powell's testimony on Tuesday before the Senate Banking Committee in a hearing to confirm his nomination for a second four-year term as Fed chief.
- With a new year, investors are anxiously awaiting the latest fourth quarter earnings reports, which will begin to be released as soon as this week, there is a great deal of focus on development and change within the S&P 500 companies.
- Elsewhere, investors will also be paying attention to earnings reports from some of the largest U.S. banks that will be releasing their results for the fourth quarter of 2021 at the end of the week. JP Morgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) are scheduled to report Friday morning before the opening bell.
- Oil prices have started the week higher, as supply disruptions in Kazakhstan and Libya appear to be offsetting concerns over the rapid global increase in Omicron infections.
