- Asia's markets traded gingerly as investors braced for bond market turbulence and assessed the economic impact of the fast spreading Covid omicron variant.
- South Korean stocks dipped, while those in Hong Kong and China varied amid a turbulent start. US futures bounced between gains and losses as the S&P 500 had its worst start to a year since 2016, as bond markets were roiled by predictions of faster-than-anticipated US interest-rate increases.
- The Nasdaq 100, which is focused on technology, suffered its worst week since February due to a rotation out of high-growth sector firms. Japan is shut due to holiday.
- Treasury futures continue to fall after marking the largest one-week drop since February 2021. Australia's 10-year bonds have plummeted. Treasury yields rose across the board last week, following a selloff triggered by Federal Reserve minutes indicating a willingness to begin raising rates as soon as March. Because of the Japan holiday, cash treasuries will not trade in Asia. The dollar remained stable.
- This week's US inflation figures will be closely watched as concerns rise that the Fed is falling short in combating rising pricing pressures. Employers in the US gained fewer employees than predicted in December, but wages climbed more than expected, bolstering the Fed's case for tightening liquidity.
