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 24th January 2022

one year ago



It was a volatile week for US equities, as the Nasdaq briefly hit correction territory and Q4 earnings fell short of forecasts. European indices were hit by expectations of rising interest rates. Japanese indices were weaker as the government reimposed a quasi-state of emergency in key areas. In China, markets were firmer as monetary policy was eased and the government promised further support for the property sector.


The yield on the US 10 year Treasury bond hit 1.9%, its highest level since before the pandemic, before falling back as bond prices rose on weaker jobless claims. In Europe the German Bund yield briefly moved above 0% for the first time since May 2019. Investment grade credit markets saw good demand for issuance from some US banks, while high yield markets were subdued by broad risk off sentiment.


The yen strengthened against all majors, while sterling weakened across the board. The euro only succeeded in making ground against sterling, as it also weakened slightly against the dollar.


Oil prices touched levels not seen since 2014 on supply concerns, as geopolitical tensions rose. Gold rose 1% in response to rising inflation expectations.

Responsible investing

European Central Bank (ECB) president Christine Lagarde committed to ‘greener’ changes to all the bank’s operations, which could include using the €2.8 trillion asset purchase scheme in the fight against climate change.


Eurozone December inflation hit a record high at 5%, while UK inflation touched a thirty year high at 5.4% for the same month.

The People’s Bank of China cut its mortgage lending rate for the first time in two years, while the ECB reiterated there would be no change to policy rates in 2022.

President Xi of China warned of ‘serious negative spillovers’, if Western economies perform a U-turn on monetary policy in the face of rising inflation.

on the

The January meeting of the US Federal Reserve will be closely observed for commentary on inflation and interest rates.

Flash PMI data from around the world are expected to show an Omicron hit, mainly impacting the services sector.

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


Latest investment news


Archinomics Monthly - August 2023

Article | Investments | 06/09/2023

China’s economic activity remained under pressure. Exports tumbled 14.5% year on year in July, the steepest fall since the start of the pandemic, while imports fell 12.4% on a year-on-year basis.


Archinomics Monthly - July 2023

Article | Investments | 04/08/2023

After the pause in June, the US Federal Reserve (Fed) raised interest rates by 25 basis points in July, taking the federal funds rate to a range of 5.25-5.50%, a 22-year high.


Archinomics Monthly - June 2023

Article | Investments | 06/07/2023

The US Federal Reserve (Fed) paused its rate-hiking stance for the first time in 14 months as it waits to see how the significant hikes already implemented will feed through into the economy.

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.