European indices close higher for the second consecutive day

The major European indices are closing higher for the second consecutive day as equity trading gets off to a good year in 2022.

The provisional closes are showing:

  • German DAX, +0.7%
  • France’s CAC, +1.3%
  • UK’s FTSE 100, +1.5% (the UK market was closed yesterday)
  • Spain’s Ibex +0.6%
  • Italy’s FTSE MIB +0.4%

In the European debt market, the benchmark 10 year yields are ending the day mixed/little changed with the exception of the UK 10 year which is up 11.8 basis points.

European 10 year yields
Benchmark 10Y yields are mixed with the exception of the UK

In other markets as European/London traders look for the exits shows:

  • Spot gold is up $10.76 or 0.60% at $1812.24
  • Spot silver is up eight cents or 0.35% at $22.95
  • WTI crude oil futures are trading up $0.63 at $76.72
  • Bitcoin is trading at $46,722 little change from morning US levels

In the US stock market the NASDAQ index suffers while the Dow industrial average as traded to a new all-time intraday high. The S&P index is trading above and below unchanged after reaching an all-time high earlier in the day. Both the Dow and S&P closed at record levels yesterday:

  • Dow industrial average up 218 points or 0.60% at 36803
  • S&P index down -5.5 points or -0.12% at 4791.06
  • NASDAQ index -251 points or -1.59% at 15581
  • Russell 2000-10.74 points or -0.47% at 2262.03

In the US debt market, the selling continues out the longer end of the curve with the tenure up 4.5 basis points and the 30 year up 7.8 basis points. The yield curve is showing the 2 – 10 year spread up to 91.3 basis points from 84.4 basis points at the close yesterday

US yields

China cash liquidity demand estimated above US$700bn in January, up around 20% from 2021

Bloomberg with the estimate of demand for cash liquidity during the month. Citing a “wall of maturing debt” and an expected seasonal demand for cash.

  • Demand for liquidity may total about 4.5 trillion yuan ($708 billion) in January, 18% more than the amount seen last year
  • An increase in the amount of policy loans coming due and demand for cash to be spent during the Lunar New Year, which takes place earlier in 2022, are drivers.

Chinese New Year in 2022 is February 1. Extended holidays in China will be January 31 to February 6, inclusive.

2022 is Year of the Tiger.

china 2022 year of the tiger

S&P and Dow industrial average close at a record highs to start the trading year S&P index falls just short of record closing levels

The major stock indices all posted gains in trading today, with the S&P and Dow industrial average both closing at a new record highs to start the trading year.

  • The NASDAQ index closed higher for the first time in five sessions
  • Dow closed above its previous record close at 36488.64. Its hi price today was short of the all-time intraday high of 36679.44
  • S&P index closed above its record high 4793.05. The high today was short of all time record high at 4808.93

Energy lead the way with a 3.1% gain followed by consumer discretionary is at 2.9%. Financials rose by 1.2% and technology rose 0.9%.

Apple topped 3 trillion in market capitalization today but backed off below that level at the close.

The final numbers are showing:

  • Dow industrial average rose 246.76 points or 0.68% at 36585.07
  • S&P index rose 30.38 points or 0.64% at 4796.57. Its hi price reached 4796.64
  • NASDAQ index rose 187.83 points or 1.2% at 15832.80.
  • Russell 2000 rose 27.24 points or 1.21% at 2272.55.
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