• US indices plunged yesterday following another acceleration in the US CPI inflation. S&P 500 dropped 1.81%, Dow JOnes moved 1.47% lower while Nasdaq and Russell 2000 dropped 2%

  • Stocks in Asia moved lower as well with S&P/ASX 200 dropping 1%, Kospi moving 0.9% lower and indices from China trading 0.2-1.2% lower
  • DAX futures point to a lower opening of the European cash session today
  • Fed’s Bullard said that 100 basis points of tightening may be needed by July. He also hinted at a possibility of a 50 bp hike in March
  • Fed’s Barkin said that the US economy will recover to pre-pandemic levels in Q1 2022. Barkin said he is not convinced of a 50 bp rate hike in March
  • Goldman Sachs expects a total of seven 25 bp rate hikes this year
  • ECB President Lagarde said that rate hikes will not solve current problems of the euro area economy
  • RBA Governor Lowe said at a parliamentary testimony that there is a big divergence between central bank and market expectations
  • Cryptocurrencies are trading slightly lower – Bitcoin approaches $43,000 area while Etehereym drops below $3,100
  • Commodities trade lower today under pressure from stronger USD. Brent and WTI trade around 0.8% lower. Gold trades 0.2% lower on the day while other precious metals drop over 1%
  • USD and JPY are the best performing major currencies while AUD and NZD lag the most