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February 2022 Monthly

January 31, 2022
The new year began with a bang.  Rising inflation, less government bond buying, and anticipation of more central banks tightening, fueled a substantial rise in interest rates and a dramatic drop in equities. The geopolitical backdrop also lent itself to a weakening of investor confidence.The US 10-year Treasury yield rose by more than 25 bp, the m…
February 2022 Monthly February 2022 Monthly Reviewed by Marc Chandler on January 31, 2022 Rating: 5
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Risk Appetites Remain Fragile

January 31, 2022
Overview: The sentiment that fueled the recovery in US equities before the weekend carried over into today.  Several Asia Pacific centers, including China, Taiwan, and South Korea were closed today, but Japan, Hong Kong, and India rose by more than 1%.  Europe's Stoxx 600 had a four-week drop in tow, is up around 0.6%, led by information techn…
Risk Appetites Remain Fragile Risk Appetites Remain Fragile Reviewed by Marc Chandler on January 31, 2022 Rating: 5
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Technicals: Dollar Looks Good, But...

January 30, 2022
The aggressiveness that the market now sees in Fed tightening underpinned the dollar, while the 2–10-year yield curve flattened to levels last seen in November 2020.  The market has about a one-in-five chance that the initial move in March is 50 bp.  The swaps market has about 135 bp of tightening discounted for this year.  With a Fed move in Marc…
Technicals: Dollar Looks Good, But... Technicals: Dollar Looks Good, But... Reviewed by Marc Chandler on January 30, 2022 Rating: 5
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Week Ahead: More Central Banks, EMU Inflation and US/Canadian Jobs

January 29, 2022
Given the steep losses many investors have experienced in recent weeks, many want to identify the culprit that is responsible.  Two have emerged.  Federal Reserve Chair Powell and Russian President Putin.  Putin's threat may have encouraged some risk adjustment, but looking back at February 2014, when Russia invaded Crimea and annexed it, it s…
Week Ahead: More Central Banks, EMU Inflation and US/Canadian Jobs Week Ahead: More Central Banks, EMU Inflation and US/Canadian Jobs Reviewed by Marc Chandler on January 29, 2022 Rating: 5
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Dollar Rides High

January 28, 2022
= Overview: The more hawkish turn by the Federal Reserve continues to ripple through the capital markets.  Equity markets are struggling to stabilize.  Apple's earnings help its shares and ecosystem stabilize.  The MSCI Asia Pacific Index pared with this week's losses were helped by 2%+ gains in the Nikkei and Australia. Strong industrial p…
Dollar Rides High Dollar Rides High Reviewed by Marc Chandler on January 28, 2022 Rating: 5
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When Maximum Fed Flexibility is Hawkish

January 27, 2022
Overview:  If equities had appeared to drive the other capital markets recently, the debt market took the bull whip yesterday.  The surge in US rates saw equities reverse lower and the dollar rally.  The MSCI Asia Pacific Index was sold to its lowest level since late 2020, led by more than 3% losses in the Nikkei and Kospi.  Foreign investors have…
When Maximum Fed Flexibility is Hawkish When Maximum Fed Flexibility is Hawkish Reviewed by Marc Chandler on January 27, 2022 Rating: 5
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