US stocks staged a major comeback on Monday in a tumultuous session that saw indices shed at least 3% at their lows. The NASDAQ, which was at one point 4.9% down, ultimately led gains closing 0.63% firmer. The DOW and the S&P made similar comebacks closing 0.29% and 0.28% up respectively. Yield on 10Y USTs similarly whipsawed closing at 1.7706% having traded as low as 1.71%.
Asian stocks were lower on Tuesday as geo-political tensions and the upcoming Fed meeting weighed down on investor optimism. Unlike Wall Street’s rebound in Monday’s session, Asian bourses mostly slid further from early session drops with KOSPI leading the slide at 2.56% even as Q4 GDP topped estimates at 7.1% YoY. The ASX leading the slide at 2.49% in the red; annual inflation topped estimates in Q4 at 3.5% against an expected 3.2%. The CSI and NIKKEI closed 2.26% and 1.66% in the red as well.
The lira closed little changed at 13.4548 on Monday weathering the selloff in risk assets seen across the market. In fact, the currency was firmer earlier in the session against the dollar trading as low as 13.34 following assurances by the Finance Minister that inflation will peak about 40% compared to estimates of above 50% by some analysts; December inflation hit 36.1%.
Angola Eurobonds were upgraded to B- by Fitch with the rating agency citing improvements in the country’s fiscal metrics as the economy returns to positive growth. Debt to GDP ratio significantly improved as a result of higher oil prices (which pushed nominal GDP higher) at 78.5% in 2021 from 126.9% forecast in September 2020. The Finance Minister also announced that the country will return to capital markets in 2022 to partly cover $4 billion external funding needs through Eurobond sales.
Brent had a similarly choppy session on Monday; the global benchmark slid from an early morning peaks $88.88/bbl to $85.11/bbl. The selling amid a general turn in risk sentiment for risky assets even as Middle East and Russian-Ukraine tensions threaten to derail supplies. The benchmark is still up for the year however, about 11% firmer.