Skip to main content Skip to site footer

You are using an outdated browser. Please upgrade your browser to improve your experience.

Archinomics Weekly - Monday 21st February 2022

one year ago

the
MARKETS

Equities

Major indices suffered a second consecutive week of losses, as tensions on the Ukrainian border added to inflation concerns. In the US the defensive consumer staples sector outperformed. In Europe, the Stoxx 600 index ended the week 1.86% lower, as the crisis in Ukraine appeared to escalate. Markets in Japan were weaker, driven by fears of more aggressive US monetary policy. Onshore Chinese markets rose, as a drop in reported inflation boosted risk appetite.

Bonds

US Treasury yields fluctuated on conflicting forecasts for interest rate rises and the Ukraine situation. Core eurozone bond yields ended the week lower, and prices rose, as fears over geopolitical developments intensified. Spreads widened in the US corporate bond markets, particularly in the high yield sector, on concerns over potential sanctions on Russia.

Currencies

The euro was weaker across the board, while the yen made ground against all majors. The US dollar showed gains against the euro only, reflecting the slightly less hawkish tone of the US Federal Reserve’s latest minutes.

Commodities

Oil pushed above $96 per barrel early in the week, on fears of a Russian invasion of Ukraine. Gold, viewed as a safe haven asset, hit its highest level since June last year.

Responsible investing

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.

MACROECONOMIC
UPDATE

FOMC minutes from the Fed’s January meeting spoke of interest rates being raised ‘soon’, while market forecasts touched seven rate hikes for 2022.


The eurozone’s December trade deficit hit €9.7 billion, the highest level since August 2008, as imported energy prices soared.


China’s PPI and CPI inflation data showed a moderating of prices in January, allowing scope for easier monetary policy.

on the
RADAR

Flash PMI data from around the globe are expected to present a mixed picture.


US markets will be closed on Monday for the President’s Day holiday.

Listen to our weekly podcast for more information and our experts’ insights.

Architas

Latest investment news

Insight

Archinomics Monthly - February 2023

Article | Investments | 06/03/2023

Tensions between the US and China rose after the US shot down a balloon, which it alleged that China was using for the purposes of espionage. The US also warned China against supplying Russia with weapons, saying it could risk escalating the war in Ukraine.

Insight

Archinomics Monthly - January 2023

Article | Investments | 06/02/2023

The headline rate of inflation continued to fall across most economies. US consumer prices rose at an annual rate of 6.5% for December, the lowest rate since October 2021, while headline eurozone inflation eased to 9.2% compared to a peak of 10.6% in October 2022. 

Insight

Archinomics Monthly - December 2022

Article | Investments | 09/01/2023

China pivoted away from its zero-Covid policy, with the authorities refocusing on consumption and industries such as technology and property. Infection levels surged as testing and quarantine requirements were removed.

We use cookies to give you the best possible experience of our website. If you continue, we'll assume you are happy for your web browser to receive all cookies from our website. See our cookie policy for more information on cookies and how we manage them.