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Written by Charles-Henry Monchau | Jan 15, 2022 1:22:00 PM

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Inflation and rate worries weighed on US equity large-caps indices as earnings season begins. The technology-heavy Nasdaq Composite recorded its third consecutive weekly loss. Financials shares came under pressure on Friday as JPMorgan Chase and Citigroup reported lower profits in the fourth quarter. Energy shares outperformed as oil prices continued their climb back to late-October highs. Shares in Europe pulled back on signals that the U.S. Federal Reserve would tighten monetary policy at a faster rate than the market had previously expected. Chinese markets fell for the week; the CSI 300 Index retreated 2%, weighed by headlines about refinancing difficulties in the country’s troubled property sector. In Fixed Income, US 10-year bond yield hit 1.8% on Monday but ended the week at around 1.78%. Yields were mixed this week with the long-end outperforming (managing to end the week very marginally lower), while the short-end was smashed 10bps higher. Rate-hike odds surged with the market now implying a 75% chance of a 4th rate-hike by the end of the year. Cryptos had another choppy week but ended higher with BTC and ETH up around 3% on the week.