London, Wednesday, 5 January 2022 -
US Markets summary
The FOMC minutes revealed that the Fed would likely raise rates sooner than expected and may decrease its balance sheet quickly after raising rates, sending US equities significantly lower on Wednesday. After closing at a record level the day before, the Dow Jones fell 393 points, or 1.1 percent, to 36407; the S&P 500 fell 1.9 percent to 4701; and the Nasdaq fell 3.3 percent to 15100. As increasing Treasury yields fuelled concerns about market valuation, tech stocks resumed their downward trend. The real estate sector was also down, but Merck & Co (2.4 percent), Intel (1.4 percent), and Honeywell (1 percent) also saw gains.
European Markets summary
On Wednesday, European stock markets set a new high, led by increases in automakers such as Renault, Daimler, and Stellantis, as investors flock to lower-cost sectors with the potential of increased interest rates. Stellantis gained a boost once it was announced that it would collaborate with Amazon to create automobiles and trucks. In addition, despite the effects of the worldwide semiconductor chip shortage, German carmaker BMW claimed record sales of over 2.2 million units from its BMW branch last year. In terms of data, services PMI readings in European countries declined in December as COVID-19 limitations were reintroduced, while consumer sentiment in France reached its highest level in three months in December.
U.S. Stock Market Indexes
S&P 500: -92.87 (-1.94%) to 4,700.67
Nasdaq: -522.54 (-3.34%) to 15,100.17
Dow Jones: -392.35 (-1.07%) to 36,407.30
European Stock Market Indexes
STOXX Europe 600: +0.33 (0.067%) at 494.35 as at Jan 5, 6:00 PM GMT+1
FTSE 100 in London: +11.72 (0.16%) at 7,516.87as at Jan 5, 4:35 PM GMT
DAX 30 in Germany: +119.14 (0.74%) at 16,271.75 as at Jan 5, 5:55 PM GMT+1
CAC 40 in France: +58.96 (0.81%) at 7,376.37 as at Jan 5, 6:05 PM GMT+1
FTSE MIB 30 in Italy: +207.83 (0.74%) at 28,162.67 as at Jan 5, 5:35 PM GMT+1
IBEX 35 in Spain: −5.00 (0.057%) at 8,790.80 as at Jan 5, 5:38 PM GMT+1
Other markets
Ten-year U.S. Treasury note: +3.7 bps to yield 1.7050%
Dollar index: -0.08 or -0.08% at 96.19 Jan 5, 2022 6:05 p.m. EST
VIX volatility index: +2.82 (16.68%) at 19.73Jan 5, 3:15 PM CST
Oil prices
Brent crude: -0.56 or -0.69% $80.24 as at Jan 5, 2022 10:59 p.m. GMT
West Texas Intermediate: -0.64 or -0.82% $ 77.21 as at Jan 5, 2022 at 6:50 p.m. EST
Precious metals
Gold: -3.61 or -0.20% $1,810.41 an ounce
Silver: -0.28 or -1.22% $ 22.78 an ounce
Cryptocurrencies
Bitcoin: -2,374.90 (-5.18%) at $ 43,513.65 as at 12:01AM UTC
Ethereum: −16.67 (0.47%) at $ 3,534.98 as at Jan 5, 11:59 PM UTC
(Written and edited by: The Decision Maker)
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