Market Recap 20/12/2021

  • Market Recap 20/12/2021

    Market Recap

    December 20th, 2021


    Fears of the Omicron variant and prospects of accelerated Fed tightening spurred volatility.  The Nasdaq (3.0%) led the selloff followed by the S&P 500 (1.9%) and the Dow Jones (1.7%).  The VIX (15.4%) spiked to a level of 21


    Value fared better than growth.  The defensive Healthcare (3.2%) and consumer staples (2.9%) led the markets, while consumer discretionary (2.9%) and IT (3.4%) faltered on rising interest rates headwinds


    The US Fed accelerated its tightening pace with plans to end asset purchases by March 2022, instead of June, and increase rates three times in 2022, up from a previously-forecasted single increase.  The Bank of England raised its key interest rate to become the first major central bank to pivot.  The MOVE (2.6%) index declined

    Commodities & FX

    Oil (1.1%) continued to hold support at $70 as oil producers assess the potential severeness of Omicron-led supply/demand disruptions.  Gold (0.9%), silver (0.9%) and the USD (0.7%) (vs. major currencies basket) all rose

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    2020 Global Debt Increase Marks the Largest Surge in 50 Years

    Source: IMF

    The New Dot Plot vs. Futures Market

    Source: Bloomberg

    Market Performance


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