Strong start

Today's news headlines: 

‘Companies raise $100bn on global debt market in brisk start to 2022’. Companies have started 2022 with intent, raising $100bn on the corporate bond market to secure lower-cost funding before interest rates begin to rise substantially. This contrasts with new equity issuance, which came in at just $7bn in the first week of the year, much lower than the $22bn recorded in 2021. The recent move higher in Treasury yields is a cause for concern for companies as borrowing costs rise but with interest rate hikes on the way, securing lower-cost funding is key. (Financial Times)

‘US and Russia agree to extend talks over Ukraine crisis’. The United States has continued to emphasise the ramifications if Russia decides to invade Ukraine. US Deputy Secretary of State Wendy Sherman, and Russia’s Deputy Foreign Minister Sergei Ryabkov, met yesterday but failed to come to terms on mutually beneficial arrangements. Russia is still focused on reducing the size of Nato’s forces throughout Europe, with the US also pressing for de-escalation in the region. (Financial Times)


Today

Asian markets gapped lower overnight after a mixed day of trading on Wall Street yesterday. The German 10-year bond yield is close to escaping negative yields for the first time in three years. US stock futures are relatively flat today, with a light day of data ahead.

Events

UK British Retail Consortium Retail Sales Monitor y/y (Dec): 0.6% (est. 0.3%)
European Central Bank President Christine Lagarde speaks: 10:20AM
Federal Open Market Committee member Loretta Mester speaks: 2:12PM
FOMC member Esther George speaks: 2:30PM
Federal Reserve Chairman Jerome Powell testifies: 3:00PM


Interbank rates:

GBP/USD – 1.3612
GBP/EUR – 1.2000
EUR/USD – 1.1343
USD/CAD – 1.2644

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.