In the US, the S&P500 declined by -0.3%, a second consecutive weekly decline with the tech sector seeing further weakness. On the Continent, European bourses took the lead from their American counterparts with the German DAX and French CAC40 falling by -0.4% and -1.1% respectively. The Nikkei 225 in Japan also lost ground with the index dropping by -1.2%. Sentiment has also been hit by a further wave of COVID cases in the capital Tokyo with the country also extending the ban on non-residents entering the company until next month. One major market to buck the negative trend was the FTSE100 which rose by +0.8. 
After the prior week’s sharp increases, sovereign bond yields were somewhat muted last week despite the pullback in global equity markets. The 10-year US Treasury yield was unchanged at 1.77% whilst the equivalent duration UK gilt yield declined by 3 basis points (bps) to 1.15%. The 10-year Eurozone benchmark fell by a single basis point to -0.13%.
Moving to commodity markets, Brent Crude rallied by +5.2% to $86.17 a barrel on supply worries and expectations that the Omicron variant may not prove to be as disruptive as initially feared. Copper and gold prices also rose last week, the former by +0.4% to $9,730 a tonne and the latter by +1.7% to $1,821 an ounce. 
Inflation and unemployment data are amongst the standout figures released in the UK this week. Retail sales are also published by the ONS later in the week. It’s a somewhat muted week in the US, in part due to Monday’s Martin Luther King day with building permits and housing starts the only figures of note expected. Inflation data is also due from the Eurozone this week whilst Economic Research centre ZEW publishes its monthly sentiment indicators on Tuesday. In Japan, the Bank of Japan hosts its first policy meeting of 2022 on Thursday with no changes expected to be made on this occasion. Meanwhile in China, a raft of key figures was published in the early hours of Monday morning, the key one being Q4’21 GDP which showed the economy growing by +4.0%, a 90bps reduction on the prior quarter. Retail sales, fixed asset investment, industrial production and unemployment were also released. 
 U.S. Bureau Of Labor Statistics, 17/01/2022
 T. Rowe Price, 17/01/2022
 Refinitiv, 17/01/2022
 Forex Factory 17/01/2022
The value of an investment may fall as well as rise. You may get back less than the amount invested.
The value of investments may fall as well as rise purely on account of exchange rate fluctuations.
Past performance is not indicative of future performance.
Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2022. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE Russell®” is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
© S&P Dow Jones LLC 2022. All rights reserved.
The information contained does not constitute investment advice. It is not intended to state, indicate or imply that current or past results are indicative of future results or expectations.
Full advice should be taken to evaluate the risks, consequences and suitability of any prospective investment. Opinions provided are subject to change in the future as they may be influenced by changes in regulation or market conditions. Where the opinions of third parties are offered, these may not necessarily reflect those of Rowan Dartington.
Rowan Dartington is part of the St. James’s Place Wealth Management Group. Rowan Dartington & Co. Limited is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No. 02752304 at St. James’s Place House, 1 Tetbury Road, Cirencester, England, GL7 1FP, United Kingdom.