Monday marked the end of the volatile and anxiety-ridden month across the globe. Rising cases of the omicron variant of the coronavirus, a possible interest rate hike in the U.S., corrections in technology stock prices, a possible Russia-Ukraine invasion, and increasing global inflation kept the markets on the edge of their seats throughout January.
Another Month of Mayhem for the U.S.?
Yesterday, the U.S. stock market ended its worst month since the onset of the pandemic 2 years ago. The U.S. indexes closed the final trading day on a positive note, with a strong rally in technology stocks. The Dow Jones (DJIA) and S&P 500 (SPX) closed 1.17% and 1.89% higher respectively. Meanwhile, the tech-heavy NASDAQ 100 index (NDX) climbed 3.29%.
Despite the final rally, the major indexes recorded sharp losses in January, after weeks of uncertainty around the Fed’s policy shift, Russia-Ukraine tensions, and rising inflation. For instance, the NASDAQ 100 declined around 12% in January, a significant one-month decline.
Europe Looks Ahead with Hope
In another part of the world, Europe is expected to start the new month of trading on the right foot. According to data from trading firm IG Group, the U.K.’s FTSE index opened 45 points higher, Germany’s DAX climbed 113 points, France’s CAC 40 opened 65 points upwards, and Italy’s FTSE MIB jumped 154 points as the markets opened.
Nonetheless, Europe is still gripped with fear over the repercussions of a possible Russian invasion of Ukraine, particularly a potential cut in oil supply from Ukraine.
Asia-Pacific Off to a Good Start
The Asia-Pacific markets, on the other hand, are being driven by their own dynamics today. Australia’s ASX 200 climbed 0.49% after the Reserve Bank of Australia decided to keep its cash rate unchanged at 0.1% on Tuesday. This was welcome news, as the market was expecting a rate hike.
India’s budget for the fiscal year 2023 pushed the Nifty 50 and Sensex indexes up 1.44% and 1.23% respectively.
Japan Nikkei 225 rose 0.28% after Reuters reported an uptrend in manufacturing activity, growing the fastest it has in the past 8 years.
On the other hand, mainland China, Hong Kong, South Korea, and Singapore remain closed for a market holiday.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
