Equities

US equity markets touched new record highs, led by the tech sector, as Apple neared a valuation of $3 trillion. European markets rallied, as fears over the Omicron variant subsided. In Japan markets moved up, after Prime Minister Kishida outlined plans for a new economic era. Chinese markets bounced strongly as the central bank cut reserve requirements for the banking sector.

Bonds

US Treasury markets were unfazed by inflation data and yields fell as prices rose towards the end of the week. Core Eurozone bond yields, however, ended higher. US credit markets saw generally strong demand for new issuance, although spreads over government bonds widened towards the end of the week.

Currencies

The euro traded narrowly against the US dollar, as markets awaited central bank statements. The yen weakened in anticipation of accelerated tightening of US policy, while the Chinese renminbi passed a three year low against the dollar.

Commodities

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

Responsible investing

The German coalition government, which includes the Green Party, was voted into power. The Greens have long opposed the Nord Stream 2 gas pipeline from Russia and could press for sanctions regarding Ukraine.