World Markets
24 January 2022
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Inflation surge could push the Fed into more than four rate hikes this year
- Asia shares brace for hawkish Fed, Ukraine tensions
- Oil Gains on Outlook for Rising Demand as Omicron Wave Fades
US Interest Rates
Accelerating inflation could cause the Federal Reserve to get even more aggressive than economists expect in the way it raises interest rates this year
With the market already expecting four quarter-percentage-point hikes this year, Goldman economist David Mericle said the omicron spread is aggravating price increases and could push the Fed into a faster pace of rate increases. Markets expect no action regarding interest rates this week but do figure the committee will tee up a hike coming in March
Equity
Asian share markets slipped on Monday as investors braced for a Federal Reserve meeting at which it is expected to confirm it will soon start draining the massive lake of liquidity that has supercharged growth stocks in recent years.
Adding to the caution were concerns about a possible Russian attack on Ukraine with the U.S. State Department pulling out family members of its embassy staff in Kyiv.
That might be one reason EUROSTOXX 50 futures slipped 0.5%, while FTSE futures fell 0.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.8% and Japan’s Nikkei 0.6%. Chinese blue chips fell 0.4%, getting little traction from a recent easing in policy by Beijing.
Oil
Oil pushed higher at the week’s open as investors weighed prospects for rising demand as the omicron virus wave fades in key economies.
West Texas Intermediate rose toward $86 a barrel in early Asian trading after a run of five weekly gains
Economic Events
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Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed is authors own views. We are not responsible for any losses on account of following the same.
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