January 2022 in Figures

January 31, 2022

High global inflation dominated the past month. Central bank interest rates were raised in January in several countries, including Poland, Peru, Romania, South Korea, Ukraine, Sri Lanka, Kazakhstan, Chile, Hungary and South Africa, and markets anticipated that top-tier monetary authorities like those covered in the table below will be following suit. The Bank of England is widely expected to hike its rate this week, and Fed officials have signaled a highly likely move in March and three or more during the rest of 2022.

Ten-year sovereign debt yields advanced across the board during the month but not nearly to the vicinity of year-on-year inflation, providing a gauge that investors have not taken the additional step of foreseeing the likelihood of a rerun of the 1970s. By and large, equities proved more sensitive to the advent of central bank tightening than did fixed income markets. Most of the share prices monitored in this feature closed January with discernible losses, although the British Ftse proved to be an exception.

The dollar, which set a year and a half weighted high, and yen experienced a buoyant month. A 17.4% leap in the price of oil was a disturbing development from an inflation standpoint. Gold lost some modest value, and a 16.8% slump in the price of a Bitcoin offered a rather inverse experience to that of crude oil.

10-Yr Yield 12/31/21 01/31/22 January Chg
U.S. 1.51% 1.79% +28 Basis Points
Germany -0.19% 0.01% +20
Japan 0.06% 0.17% +11
U.K. 0.96% 1.30% +34
Canada 1.42% 1.77% +35
Switzerland -0.17% 0.04% +21
CB Policy Rate 12/31/21 01/31/22 January Chg
Fed funds target 0.00/0.25% 0.00/0.25% 0 Basis Points
ECB deposit rate -0.50% -0.50% 0
BOJ policy rate -0.10% -0.10% 0
BOE Bank Rate 0.25% 0.25% 0
Swiss 3M Libor -0.75% -0.75% 0
FX 12/31/21 01/31/22   Change in $
EUR/USD 1.1376 1.1234 +1.3%
USD/JPY 115.10 115.09 0.0%
USD/CHF 0.9123 0.9265 +1.6%
GBP/USD 1.3524 1.3434 +0.7%
AUD/USD 0.7266 0.7071 +2.8%
NZD/USD 0.6842 0.6582 +4.0%
USD/CAD 1.2646 1.2708 +0.5%
USD/CNY 6.3559 6.3610 +0.1%
Equities 12/31/21 01/31/22 January Chg
S&P 500 4766 4516 -5.2%
Nasdaq 15645 14240 -9.0%
Djia 36338 35132 -3.3%
Dax  15885 15471 -2.6%
Nikkei 28792 27002 -6.2%
Ftse 7385 7464 +1.1%
Canada TSE 21223 21098 -0.6%
Swiss SMI 12876 12227 -5.0%
Commodities 12/31/21 01/31/22 January Chg
Oil, $ per barrel 75.21 88.31 +17.4%
Gold, $ per ounce 1828.60 1798.50 -1.6%

Copyright Larry Greenberg 2022.  All rights reserved.  No secondary distribution without express permission.

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