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The European Central Bank (ECB) came under rising pressure to exit the negative interest rate policy it has held since 2014, with the first rate rise expected as early as July.

In China, the lockdown in Shanghai entered a second month and fears grew that Beijing could also be placed into lockdown. China’s zero-Covid policy could mean further supply chain disruption and might threaten the country’s 5.5% growth target for 2022.

The conflict between Russia and Ukraine entered its second month. Russia, which has failed to take Ukraine’s capital Kyiv, says it will now focus on the contested Donbas region.

European leaders looked to move rapidly to wean their economies off Russian gas, turning their focus to renewable energy sources, as the International Energy Agency urged the EU not to sign new supply agreements.

Russia invaded Ukraine, causing shock waves around the world. Major economies responded with sweeping sanctions, including preventing Russia’s central bank from using its reserves and banning certain Russian lenders from the global payments system Swift. 

Global sanctions were imposed on the Central Bank of Russia, freezing $630 billion of foreign currency reserves and sending the rouble into freefall.

Following recent trends on US executive pay, an element of the $20 million remuneration of Starbucks CEO Kevin Johnson was in reward for reductions in methane emissions and the use of plastic straws.

The oil price touched a seven year high of almost $95 per barrel, as geopolitical tensions mounted. Gold proved a safe haven, rising 2.8% on the week.

Fed Chair Jerome Powell promised to be ‘nimble’ in the face of higher inflation, prompting forecasts of five interest rate hikes for this year.

Apple became the first company to reach a $3 trillion valuation, before falling back with the tech sector. 

Fed Chair Jerome Powell promised to be ‘nimble’ in the face of higher inflation, prompting forecasts of five interest rate hikes for this year.

China’s trade surplus hit record levels in December, as the world’s demand for durable goods remained strong.

China’s trade surplus hit record levels in December, as the world’s demand for durable goods remained strong.

US equity markets fell sharply, after the minutes of the December meeting of the US Federal Reserve (Fed) indicated a faster pace of interest rate rises. 

The oil price bounced back, as fears over the demand impact of Omicron subsided.

Varying degrees of policy response to the new Omicron variant will be outlined by governments across the world. In the US, President Biden will look to vaccine development, as well boosters and mandatory mask wearing, in preference to full scale lockdowns.

Fed Chair Jay Powell adopted a more hawkish tone, aiming for a faster unwind of monthly bond purchases, as well as acknowledging inflation as ‘persistently higher’.

The fast-spreading Omicron variant of Covid-19 was declared a ‘variant of concern’ by the World Health Organisation.

US October retail sales jumped 1.7%, the strongest gain since March, while September data were revised higher.

US Consumer Prices Index (CPI) inflation rose at its fastest pace since 1990, coming in at 6.2% year-on-year.