US Session (01/04/2022)

Concerns about rising interest rates spurred a selloff in technology stocks, causing the S&P 500 to fall from an all-time high. Treasuries sank, and the yen plunged to its lowest level since 2017.

The S&P 500 was little changed on Tuesday as data revealed conflicting indicators of US inflation ahead of the Federal Reserve's three planned rate hikes this year. Manufacturers' prices paid in December were significantly lower than predicted, adding to signals that inflationary pressures may have peaked in some places. However, data showing a record job leave rate in the United States has contributed to fears of overpaying inflation.

The tech-heavy Nasdaq 100 dropped 1.3% with Tesla Inc. down 4.2%. Cathie Wood's flagship Ark innovation ETF fell 4.4%, while a fund that tracks newly listed firms fell 4.0%.

The losses came as the sell-off in US bonds resumed on Tuesday, with the 10-year treasury yield rising two basis points to 1.65% after rising 12 basis points on Monday.

Markets expect an increase in volatility as they manage the omicron variant, supply-chain disruptions, and more central banks withdrawing pandemic stimulus. On Monday, more over one million people in the United States were diagnosed with COVID-19, setting a new global daily record.

The Fed's tightening is expected to boost rates and reset equity valuations. Meanwhile, this week's December payroll data from the United States and minutes from the Federal Reserve's meeting last month may shed more light on the pace of such a move.

US reports nearly 1 million Covid-19 cases in a day, setting global record  | World News,The Indian Express

Asia Session (01/04/2022)

Most Asian markets fell, with technology shares falling as investors worried about rising interest rates. Treasuries incurred losses.

Hong Kong's tech share index plummeted to its lowest level since May 2020. South Korea and China fell alongside US futures. Japan's stock market gained ground. As government yields rose for a second day, the Nasdaq 100 underperformed amid a selloff in technology stocks.

Treasury yields climbed, boosting the likelihood that the Federal Reserve will hike rates at least three times beginning in May to counteract price pressures. Long-maturity yields have also risen as a result of a glut of new corporate bonds.

The dollar remained mostly unchanged, while the yen fell to its lowest level since January 2017.


Europe Session (01/04/2022)

Investors predicted that data on US manufacturing and job openings will demonstrate the world's largest economy is resilient against the spread of omicron, therefore index futures and European equities climbed, continuing a good start to 2022.

Contracts for the S&P 500 index rose 0.4% after the underlying index set a new high on Monday. Carnival rose in premarket trade in New York, amid a global bounce in travel equities. The yen fell to a five-year low as demand for safe-haven assets waned. Treasury rates remained stable as traders debated the year's prospects owing to the Federal Reserve's tightening.

For the time being, investors are putting their concerns about the highly contagious omicron variant aside as they focus on the economic recovery from the pandemic. The ISM December survey, which will be released on Tuesday, will reveal the early impact of the variant on supply chains, while the jolts data will highlight the balance between job vacancies and unemployment figures.

UK PM Johnson's Spokesman: The Plan B pandemic measures have put a stop to Omicron's original path.

Japan's PM Kishida: Next week, we will review virus border restrictions.

China's Head of Foreign Ministry Arms Control Fu Cong: The US claim of China expanding its nuclear arsenal is false.

BoJ's Governor Kuroda: I believe the global economy will recover, led by advanced economies.