US equity markets were again buffeted by concerns the Fed may tighten its stance at tomorrow’s meeting, as well as geopolitical tensions. The S&P500 is currently down 2.0%, and risk-sensitive currencies and bond yields remained capped.

The risk averse mood continued, amid escalating tensions in the Ukraine, the looming Fed meeting, and inflation concerns. The S&P500 is currently down 3.0%, and at a low since June 2021. Bond yields and risk-sensitive currencies fell.

Sentiment was weighed down by escalating tensions in the Ukraine, the looming Fed meeting, and inflation concerns. The S&P500 closed down 1.9% (for a total decline in January of 9%), and bond yields and risk-sensitive currencies fell slightly.

Bond yields fell slightly, helping equities arrest a multi-week decline. The S&P500 is currently up 1.2%.

Buyers returned to the bond and equity markets, lifting the S&P500 0.3%. Bond yields and the US dollar fell, boosting the AUD and NZD.

US and European equities fell and bond yields rose, as markets raised their outlooks for central bank interest rates even further. The S&P500 is down 1.9%, and the AUD and NZD are lower.

Markets were mostly contained inside narrow ranges, amid a light global event calendar and a US holiday (MLK). The US dollar and bond yields remained elevated.

US bond yields and the US dollar rose despite disappointing US economic data, hawkish Fedspeak contributing. That weighed on the AUD and NZD. US equities were little changed, the S&P500 up 0.1%.

Central banks in the UK, Norway and Eurozone tightened policy stances, which helped weaken the US dollar. The S&P500 is down 0.5%, while US bond yields fell in divergence with European yields.

The US Federal Reserve delivered a moderate hawkish surprise to markets, projecting more rate hikes than were expected. The S&P500 shrugged off the result and is currently up 0.2%, while the US dollar and bond yields are slightly higher.