With recent market puzzles, investors have been struggling to eye only one asset with all the heavy fluctuations going on. Yet it seems to be going swell so far for the energy sector as it reaches multi-year highs. Solid gains have lifted large energy corporates' quarterly profits to record highs, Such as Exxon Mobil which has gained 6.4% overnight. Draws in crude stockpiles have also played an important role in keeping oil prices at the top amid geopolitical tensions and strong demand.

The earnings bell has also prompted markets to act like a seesaw, deriving U-turns on major indices by reversing trends. Whether its positive earnings or forecasts for 2022, the Nasdaq has been consolidating gains ahead of a slew of techs to score this week including Amazon, Google parent Alphabet, and Meta.  

Despite an anticipated aggressive rate hike kick-off starting March, growth stocks are somehow still betted. Reversing intense losses after almost witnessing their worst month in January. And defying the norm of who tends to perform better at times of higher inflationary periods such as cyclical stocks per se. Though it’s not a surprise especially with stocks overheating in 2021 and witnessing unprecedented rallies, we all questioned when will the rally hit the brakes.

Moving on to the other side of the world, Market focus on the BoE and ECB policy decisions tomorrow, with expectations for BoE to hike rates by 25bps (0.5%) to control rising inflation and accommodate to a corrected labor market, the ECB on the other hand, does not adhere with the rest of the central banks however expectations see 2 potential rate hikes mid and at the end of 2022. The Euro has been building momentum ahead of the decision tomorrow but the outlook remains at fault with fewer chances of breaking the 1.1333 resistance point and more chances of a fallout towards 1.11.