Market WATCh Weekly 7 January 2022

Market WATCh Weekly 7 January 2022

January 7, 2022

In the US, the FOMC minutes struck a decisively hawkish tone, hinting that the fed funds rate may be increased sooner or at a faster pace than previously anticipated. The ADP employment report indicated that private payrolls rose much stronger than expected in December, while the ISM PMI reports pointed to further strong expansion of the US economy. In China, the Caixin PMIs signalled relatively slow, but improving, growth in the second largest global economy in December. Domestically, the ANZ report saw job ads decline in December after two months of strong increases. High frequency data is showing the first signs of disruptions to economic activity due to the Omicron spread over east. Some COVID-19 restrictions were reintroduced, both in New South Wales and Victoria, towards the end of the week.

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