Markets Navigator 26/01/2022

Global equity markets. Trading on Wall Street was again characterized by high volatility prior to today’s FOMC announcement. After rebounding from early weakness, the S&P 500 (-1.2%) and Nasdaq (-2.3%) closed the day well into negative territory. By contrast, indices in Europe finished the session in the green (EuroSTOXX +0.6%, DAX +0.8%), led by banking, telecom and energy names. Emerging markets (MSCI EM -1.0%) weakened for a third straight session, in part due to higher energy prices. Brent rose 2.3% to around the $88/bbl level after the API reported a drawdown in US crude inventories. Geopolitical worries have also been cited as a driving factor for the oil market. In anticipation of today’s Fed decision, markets in Asia are little changed today. European futures are pointing more than 0.5 pps higher, while US futures indicate a modestly positive opening.