Danilo Masoni gives a glimpse at the future.

These days, wild swings still exist. With bulls and bears fighting for control, investors may be tested once again this week.

So while the Bank of England is set to raise rates for the second time in a row and the Fed’s Bostic said a supersized rate hike https://www.reuters.com/business/fed-rate-hike-could-be-half-point-if-needed-says-raphael-bostic-ft-2022-01-29 may be needed, the U.K. warned it was “highly likely” that Russia was looking to invade Ukraine and NATO voiced concern over Europe’s energy security https://www.reuters.com/world/nato-calls-europe-diversify-energy-supply-amid-standoff-with-russia-2022-01-30.

And if it weren’t enough, North Korea https://www.reuters.com/world/asia-pacific/nkorea-says-tested-hwasong-12-missile-sunday-2022-01-30/#:~:text=Analysts%20and%20officials%20said%20the,missiles%20and%20its%20nuclear%20weapons tested an intermediate-range nuclear-capable missile for the first time since 2017. According to the U.S., this test is part of an increasingly destabilizing pattern. They urged Pyongyang for direct negotiations.

European stock futures rose 1.5% after Chinese markets were closed. This was due to Friday’s Wall Street rally to its highest day since last year, which came after a hectic week of trading.

The world shares are on track for the worst month since April 2020. They have lost nearly $5 trillion in market capital this year, and are partially offset by positive sounds from the earnings season.

Some relief was also provided by weekend political events.

The re-election of outgoing 80-year-old Italian President Mattarella https://www.reuters.com/world/europe/italian-parties-disarray-presidential-vote-limps-2022-01-29 means former ECB boss Draghi will carry on as prime minister. And in Portugal the Socialists won https://www.reuters.com/world/europe/portuguese-go-polls-snap-election-marked-by-covid-uncertainty-2022-01-30 an outright parliamentary majority in a snap election, defying all odds.

Italy’s 10-year bond yields fell more than six basis points in Italy, which led to a wider spread of risky German bonds.

GRAPHIC: World shares market cap, https://fingfx.thomsonreuters.com/gfx/mkt/egpbklyznvq/Morning%20bid.PNG Key developments that should provide more direction to markets on Monday: * Goldman Sachs (NYSE:) ups forecasts on U.S. Federal Reserve ratehikes to five times in 2022 from four earlier * Japan’s factory output shrank for the first time in threemonths in December * Growth in China’s factory activity slowed in January as aresurgence of COVID-19 cases and tough lockdowns hit productionand demand, but the slight expansion offered some signs ofresilience * Ryanair reported a loss of 96 million euros for the finalthree months of 2021 but said it was hopeful that rivals’ cutsto capacity may help push prices up in the key summer season * Shares of Macau Legend, which owns and operates a casinoresort in Macau, fell more than 20% to an all-time low on Mondayafter its chief executive was arrested and detained by police inthe world’s largest gambling hub * German Q4 flash GDP/prelim CPI and HICP * Fed speakers: San Francisco Fed President Mary Daly;Kansas City President Esther George * Chicago PMI * European earnings: Evraz, Ryanair, Siemens Healthineers