[RECAP] UK BANK HOLIDAY TRADE AND HEADLINES (3rd January 2022)

 

MONDAY'S TRADE:

Eurozone and US equity markets kicked off 2022 on the front foot in which the Stoxx 600 saw gains of 0.5% whilst Stateside majors saw mostly gains of a similar magnitude, but the Nasdaq outpaced with gains of 1.2%. The Wall Street session saw Apple become the first ever public company to reach (briefly) USD 3tln in market value, whilst Tesla shares gapped higher after beating Q4 delivery expectations despite the chip shortage and in spite of last week's mass recall.

The debt complex was under heavy pressure with the US underperforming the EZ and in turn yields spiked higher. Treasuries were on a steady path lower with some participants noting of large blocked Futures/Swap futures spread trades also adding weight at the time. The US 30yr yield topped 2.00% again while the 10yr yield rose above 1.63%. Back to Europe, IFR highlighted speculation of a new BTP syndicated deal as soon as Tuesday, potentially a 15yr or 30yr.

DXY was propelled higher by the surge in bond yields with G10 peers lower across the board. JPY was the most resilient G10 but USD/JPY remained above 115.00. AUD, NZD, CAD were the hardest hit. EUR/USD fell back under 1.1300 but remained within December ranges. TRY saw some strength following headlines from Turkey (see below).

WTI and Brent front-month futures both settled higher after a choppy day, with the latter outperforming the former. Natural Gas futures rose amid production impacts from winter storms across eastern US. Spot gold was pressured by the USD throughout the session and briefly dipped USD 1,800/oz.

NOTABLE HEADLINES (up to Monday's European Close):

CORONAVIRUS UPDATE

ASIA

EUROPE

US

FX

COMMODITIES

GEOPOLITICS

2021 Stock Market Performance

03 Jan 2022 - 21:30- ForexResearch Sheet- Source: Newsquawk

United StatesUSDForexPurchasing Manager IndexTurkeyCommoditiesAsiaEURJapanPresidentTOPECOilUSD/TRYEuropeASML.NAVZ.UST.US3333.HKPFE.USEnergyJPYUnited KingdomTRYNatural GasYieldDXYUSD/JPYEUR/USDBrentGoldPfizer IncPFEFDAPM USASMLGermanyFranceVZTransportationFederal CorpInflationConsumer Price IndexOECDDow Jones Industrial AverageFTSE 100 IndexDAX 40 IndexBanksMetals & MiningHighlightedUS SessionResearch SheetAsian SessionGeopoliticalChinaGBPCADNZDAUDHong KongRussian FederationIndonesiaNigeriaKuwaitAfricaCanadaNew ZealandAustralia

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