Stock market today: Global stocks rise as US markets pause for MLK Jr. Day

The New York Stock Exchange and Nasdaq were closed on Monday for the holiday that honors King’s birthday on Jan. 15, with U.S. bond markets also closed.

CME Group
,

which overseas commodity markets, including Nymex-traded crude and Comex-traded gold, said there would be no regular trading or settlement on Monday.

Around the world, investors continue to worry about monetary policy tightening and inflation.

Signals from the Federal Reserve show that its monetary policy group – the Federal Open Market Committee (FOMC) – is on track for faster and faster rate hikes and a possible reduction in its balance sheet. Markets anticipate three interest rate hikes from the central bank this year, the first in March.

Inflation darkens the picture. Recent historical inflation readings, including the largest annual increase in the consumer price index (CPI) since 1982, support the idea that the Fed will tighten policy. But the data also shows that inflation is approaching its peak; slowing inflation would act as a moderating force on the Fed’s hawkishness.

“It’s becoming increasingly clear that 2022 will be a year where everything hinges on the battle between the Fed and financial conditions,” said Deutsche Bank strategist Jim Reid. “Markets will get some respite today with a US holiday and a Fed that is in its blackout period ahead of next week’s FOMC.”

With the Fed’s silence and lack of hit economic data, corporate earrings are expected to be a major determinant of investor sentiment in the week ahead. Like Barrons reported Friday that a disappointing earnings season could be a bigger problem for the global stock market than tighter Fed policy.

“The only drivers for the markets this week will be the continuation of the fourth quarter earnings season tomorrow, which started in earnest on Friday,” said Michael Hewson, analyst at brokerage CMC Markets.

Shares fell on Friday as investors depressed amid

Big Bank

income from

JPMorgan Chase

(symbol: JPM),

Citigroup

(This

Wells Fargo

(WFC). This season will continue in full swing on Tuesday with

Goldman Sachs

(GS),

Charles Schwab

(SCW), and

Financial truist

(TFC).

The focus on Monday was on China’s fourth-quarter gross domestic product (GDP) figures, which showed 4% year-on-year growth in the world’s second-largest economy.

“A combination of port disruptions due to Covid restrictions, supply chain issues, as well as soaring electricity costs and forced shutdowns of the Chinese economy, have hampered economic activity in the second half,” Hewson noted.

Here are five stocks in motion on Monday:

Swiss credit

Shares of Zurich-listed (CS) fell 2% after the bank’s chairman resigned after breaking Covid-19 quarantine rules; António Horta-Osório is leaving the band effective immediately after just nine months in the role.

The London shares of

GSK

(GSK) and

Unilever

(UL) diverged after learning that the pharmaceutical giant had received and rejected three unsolicited proposals from Unilever, a consumer goods giant, for its consumer healthcare business. GSK rose 4% while Unilever fell 6%.

The Chinese subsidiaries of

Las Vegas Sands

(LVS) and

Wynn Resorts

(WYNN) soared in Hong Kong trading after the Macau gambling hub maintained the status quo on the number of gambling licenses it issues. Actions in Las Vegas Sands and

Wynn Resorts

surged in US trade on Friday on news of clarity in Macau after months of uncertainty.

Sands China

(1928.HK) rose 14.6% on Monday and

Wynn Macau

(1128.HK) rose 11.9%.

Write to Jack Denton at [email protected]