German business outlook improves

US stocks closed weaker in yet another volatile session as the Fed kicked off its policy meeting. The NASDAQ led the slide, down 2.28% while the S&P shed 1.22%. The DOW could not hold onto earlier gains and closed 0.19% in the red. Yield on 10Y USTs closed about flat at 1.7689%.

Business outlook for German firms topped estimates in January with the Ifo expectations index rising to 95.2 against an expected 93.0 in a Bloomberg survey. The report adds to signs that the economy is on the mend after a 1% GDP contraction in Q4 2021 and buttressed the Bundesbank’s prediction of 4.2% recovery in 2022. The euro closed slightly weaker at $1.1301 while yield on 10Y DBRs was higher at -0.080%.

Asian markets were mixed in a muted trading session on Wednesday ahead of the conclusion of the Fed meeting. The NIIKEI and the KOSPI were lower 0.44% and 0.41% respectively while the HANG SENG was just in the green at 0.01% towards the end of the session. The CSI gained 0.72% even as concerns linger over potential flare-ups during Lunar New Year celebrations and the Winter Olympics. The ASX was closed for an Australian holiday.

Senegal Eurobonds moved lower in contrast to the rest of the SSA complex on Tuesday as President Macky Sall’s ruling coalition lost in key cities, including the capital Dakar, during municipal elections over the weekend. The elections, a supposed litmus test for the president’s popularity, seemed to suggest that there would be strong opposition to an extension of Sall’s tenure as president should he decide to run for a third term; a constitutional referendum in 2016 could be used to reset the clock on his term in office and Sall has not ruled out seeking a third term. Yield on SENEGL 33s closed higher at 6.16%.