- On Wednesday, US futures and European markets recovered from a selloff as optimism about profits outweighed fears about increasing bond rates.
- Contracts for three US benchmarks and the Stoxx 600 index in Europe overcame previous losses to trade marginally higher. For the sixth day in a row, Asian equities have fallen.
- Rising bond rates are fueling speculation that the US 10-year may break the 2% barrier. The Federal Reserve is expected to raise interest rates by more than a quarter-percentage point in March to combat inflation, while the Bank of England may move again the following month.
- The rate of inflation in the United Kingdom unexpectedly soared to its highest level since 1992, while Germany's 10-year yield became positive for the first time since 2019. A dollar index fell marginally.
- The international energy agency stated that the market appeared tighter than originally assumed, with demand proving robust to the omicron virus strain. Oil rose to its highest close since 2014.
- China's central bank has committed to deploy additional monetary policy instruments to boost the economy and reduce credit stress amid a real-estate collapse, breaking from US policy.
- German FDP fiscal policy specialist Fricke: Estimating interest expenditure on government bonds to at least double by 2022.
- IEA: In December, OPEC+ producers increased oil supply by 250,000 BPD.
- In 2022, demand will approach pre-COVID levels of 99.7 million barrels per day, according to the International Energy Agency (IEA).
- IEA: In November, OECD oil stocks fell to their lowest level in seven years.
- Eurozone Money Markets are bringing forward expectations for a 10 BPS rate rise by the European Central Bank to September 2022.
