Daily Alert – Wednesday 2nd February 2022: Equities continue to deliver
Yesterday saw a continuation of risk-on sentiment and the best performance so far this year from equity indices (assuming, of course, that in your world “best” equals “rising”).
Things were slightly trickier on currencies, with the JPY flat and the commodity currencies mixed. The EUR is rising, and the USD is dropping, both in contrast to how they “should” move if they were to be guided solely by their fundamentals.
So far today, sentiment is indecisive.
Later today we have inflation in the EuroZone and the OPEC-JMCC meeting. Oil has stabilised around USD87.4 per barrel, which is a 7-year high and more than twice the March 2020 pre-pandemic price. There is an expectation that today’s meeting will see a further increase in oil production, any deviation from which could puncture the already lofty price level.
We’ll be back tomorrow.
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