US growth stocks rebound supports rally, EU waits for ECB actions

US equities on Monday continued rally, powered by tech rebound and followed by mostly better-than-expected companies’ results reporting: Dow Jones rose 0.76% to 33,629, the S&P 500 climbed back over 4,000, ending up 1.2% to 4,019, and the Nasdaq soared another 2% to 11,364, mostly driven by semiconductor sector. Treasury yields traded a bit higher, with 2-year note up 5 bps to 4.22%, while the yield on the 10-year note rose 3 bps to 3.51% and the 30-year bond rate advanced 3 bps to 3.68%. The Dollar has weakened, as DXY traded to the lowest 101.465 since May 2022. The focus this week will be on a first estimate of the fourth quarter GDP data on Thursday, combined with Microsoft, Tesla and Boeing among the companies expected to post quarterly results.

Russian forces continue to engage in Zaporozhye region in Ukraine with new troops involved to military actions near this area. At the same time, DPR head Denis Pushilin reported that for Ukranian forces just one supply route open for in Artyomovsk, Donetsk Republic. On the stock markets the Russian sector traded in green with best performance in oil and gaz sectors in most of the main blue chips GAZP, SBER, ROSN, LKOH, worse than the market – Norilsk Nickel on a possible reduction in dividends. IMOEX ended 0.86% higher at 2,185.31 level, while the RTSI rose at 0.69% to 998.69. On the bond market RGBI index traded 0.22% lower at 130.08 level.

European stock markets open with mix dynamics today due to investors focusing on ECB meeting at the beginning of February and US equities rally in the prior session. On the stock markets, after Monday’s slight increase, today the DAX index in Germany traded lower 0.21% to 15,071 level, the FTSE 100 in the U.K. lost 0.42% to 7,752 points, while the CAC 40 in France rose 0.04% at 7,034 level. 10Y GILT and 10Y Deutsche Bundus yields got lower by 7bps and 3bps, correspondingly.

A muted open to SSA following Friday’s weak performance. The space had traded largely weaker as rates moved higher with 10Y UST yields up some 8bps. KENINT (+.375) also continued its firm run while GHANA (+.50) also joined in even as banks and other stakeholders continue to push back against the local debt swap proposal. GHANA (+.25) continues firm at the open amid reports that the government is now proposing a 5% coupon for local debt restructuring in 2023 having originally proposed a moratorium.

The NTB secondary market closed on a flat note with average yields across the curve closing at 3.80%. Average yields across the short, medium & long ends of the curve remained unchanged.

In the OMO secondary market, average yields closed flat with average yields across the short, medium & longs ends remaining unchanged again.

The FGN bonds secondary market closed on a positive note with average yields across the curve dropping by 5bps. Average yields on the medium end dropped by 10bps, the short end rose by 2bps while the long end remained unchanged. The Mar 2027 bond was the best performer while the Jan 2026 bond was the worst performer.