3 Jan 2022
European Stocks Kick Off 2022 with Record High Surge
The Index Today
Global stock markets rang in the New Year by setting a record high growth on Monday, yielding double-digit earnings for the third consecutive year. Additionally, oil and government bond yields have also made initial market gains.
The STOXX 600 index edged significantly higher following favorable data from Eastern Europe and euro zone.
Despite the recent spike in COVID-19 cases, the Manufacturing Purchasing Managers’ Index (PMI) has lived up to a preliminary “flash” gauge following its drop to 58.0 in December from November’s 58.4.
According to Joe Hayes, a Senior IHS Markit Economist, there are “some tentative but very welcome signs that the supply chain crisis which has plagued production lines all across Europe is beginning to recede." He also added that "easing inflation rates are again a welcome sign, but we're still in hot territory."
Oil surged on Monday with each barrel being priced at $79 spurred on by limited supplies as well as the positive atmosphere posited by the global economic recovery anticipated this year. The OPEC+ are set to meet this Tuesday and are expected to adhere to their original plans of progressively increasing production for the year.