STATE OF THE MARKETS

Equities mixed amid improved sentiments. Global equities closed mixed on the first trading day of 2022, with all major global index in the green except UK FTSE100 (-0.25%). Dow (+0.68%), S&P (+0.64%), Nasdaq (+1.20%) and Nikkei (+0.81%) stroked overbought as sentiments improved evident in the rising yields. The 10Y benchmark spiked up to 1.64% while the 30Y hit 2.04% as the Dollar (DXY) climbed back to the 96.20 barrier.

In the commodities market, crude remained supported at $75.80/bl after reports that OPEC+ decided to maintain its production output. Rising yields sent gold lower, but still fixed above the key handle $1,800/oz. Elsewhere, iron ore spiked to $120.40/tn after news hit the wires that China rebar inventory is down 0.7% signaling higher consumption.

In the FX space, bullish sentiments are evident as Sterling, Aussie, Loonie and Dollar seized the helm of demand from Swiss across all horizons. Short term traders seemed to buy into the oversold Yen. On Tuesday, markets look forward to seeing the latest earnings report from Miller Knoll (MLKN) and SMART Global (SGH) as well as the US manufacturing index and jobs opening.