Morning Report 19 Jan 22: Rising interest rates send global stocks lower

US sharemarkets fell sharply on Tuesday on growing investor expectations that the US central bank will have to boost interest rates earlier-than-anticipated to combat inflation. US treasury yields hit 2-year highs, pressuring mega cap technology shares. Shares of Apple (-1.9%), Meta Platforms (-4.1%), Alphabet (-2.5%) and Amazon (-2%) all fell. Microsoft shares dipped 2.4% after announcing the US$68.7 billion purchase of video company Activision Blizzard (+25.9%). Goldman Sachs shares plunged 7% after missing fourth-quarter profit expectations on weak trading activity. At the close of trade, the Dow Jones index fell by 543 points or 1.5%. The S&P 500 index lost 1.8% and the Nasdaq index shed 387 points or 2.6%, hitting its lowest level in 3 months.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.