“Moving in” by Reuters

A look at the next day from the hand of Sujata Rao.

Forecasts for war do not worry the markets as much as before. U.S. President Joe Biden believes Russia intends to “move” into Ukraine, and has questioned whether the West will take revenge “against a small incursion.”

However, after a two-day drop in the MSCI’s global stock index rose, buyers saw the strong Nasdaq enter the “correction” territory, essentially a 10% drop from the last peak.

Wall Street, at least for now, looks set to bounce back, with Nasdaq futures rising about 0.7%. And the yields on “safe” bonds in Germany and the United States are rising again after falling back in late Wednesday.

The reasons for regular purchases are well documented: large amounts of cash, negative inflation rates, strong company profits. And the fact that China has reduced its first mortgage rate in almost two years shows that tightening policies in the developed world can at least be offset by Beijing’s actions.

And despite the intense bond sales this month, a memento on a global debt benchmark, Bloomberg. Barclays (LON 🙂 Multiverses (7-10 years old) only made up more than 2%.

Finally, the world economy is showing signs of recovering from Omicron’s delay by the end of 2021 and continues to ease supply chain delays. Japanese exports and imports hit record highs in December in terms of yen value

Finally, labor markets are so tight in some parts of the world, where Australia even thought of allowing 16-year-olds to drive forklifts, a proposal that has been put on the ice, some may happily say. But the day may yet come.

Chart: Bloomberg Multiverse, https://fingfx.thomsonreuters.com/gfx/mkt/myvmnbrewpr/Pasted%20image%201642630206915.png Major developments that should give markets more direction on Thursday:

-More geopolitics; China has said it has abandoned a U.S. warship and suggested that North Korea resume nuclear and missile tests.

-Norwegian central bank announces interest rate decision at 0900 GMT (expects to hold)

-Lagard says inflation in the eurozone will decline gradually

-Philadelphia Fed January Survey

-SURVEY-To stop the easing of the Turkish cenbank

-Central banks also meet in Malaysia, Indonesia, Sri Lanka, Ukraine

-Last eurozone HICP, December, ECB minutes

-Initial U.S. Unemployment Claims / Existing Home Sales

-10-year US TIP auction

– US earnings: Northern Trust (NASDAQ :), Union Pacific (NYSE :), Netflix (NASDAQ :), American Airlines (NASDAQ 🙂