Greetings,
United States: The 2-year Treasury yield broke above 1% as the market prices in faster rate hikes ahead.
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/US-125-2yr2201180439.png)
A 1% increase this year is now fully priced in.
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/US-125-Hikes2201180439.png)
Canada: Will we see a BoC hike next week? The market is pricing in a 70%+ probability of such an outcome.
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/CA-Hike-ST2201180439.png)
The BoC business outlook indicator hit a new high last quarter.
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/CA-Bus5A2201180439.png)
China: COVID clusters continue to pop up, …
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/CH-COVID-AAA2201180439.png)
… which is a drag on consumer-facing businesses.
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/CH-Consumption-services-struggling2201180439.png)
Energy: Europe has been able to replace lost natural gas imports from Russia with LNG.
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/EN-LNG-imports-have-been-compensating-for-loss-of-NG-from-RU2201180439.png)
Rates: The market expects the Fed to be done hiking rates by the end of next year. Many economists disagree.
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/US-123-done-hiking-by-the-end-of-next-year2201180439.png)
Food for Thought: Russia’s vs. Ukraine’s military forces:
![The Daily Shot Brief – January 18th, 2022](https://thedailyshot.com/wp-content/uploads/VTG-AAA-Russia-v-Ukraine-military-forces2201180439.png)
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com