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Below are Views On Daily Global Market Update 31 December 2021 By Asheesh Chanda, Kristal.AI

Mixed Bag

Equities were mixed overnight with SPX falling to the 4780 support level. Russia led gains across major market indices after Putin and Biden reportedly had a productive chat ahead of the bilateral and NATO talks scheduled in the second week of Jan. Natural Gas also fell about 7.5% on the day on the apparent de-escalation ahead of the new year. No new information has emerged here but market watchers appear to be taking the existence of a communication channel at the top as a sign that an invasion of Ukraine is less likely now. SPX's biggest gainer was Real Estate (for a second straight session) but Tech fell back, unable to sustain its momentum from earlier in the week. Energy remains the 2021 outperformer at +46% YTD while the headline index has gained a handsome +27% this year as well.

US yields fell back as treasuries gained. The 10Y is back close to the 1.5% level and the 30Y's run at 2% will have to wait for now. The surprising risk-off tone came despite US weekly unemployment numbers coming in post pandemic lows (since March 2020). Crude and Crypto traded sideways and Gold moved higher within its broad range. Most markets are off today but the US will be open for a full session. Not much on the data calendar and we will likely close out 2021 on a positive note.”

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