Global Stocks extend lower, USD steady and Yields picked up across the curve with the short end underperforming in a bear flattener given the Fed views. The curve flattened to -72 bps before unwinding to -70 bps. The looming FOMC decision on Wednesday and expectations for a hawkish trimming in the rate path left bonds and stocks heavy with buyers sidelined. Concerns over upcoming earnings from Apple, Amazon, Alphabet, and Meta also weighed. The US100 slumped -1.96%. European bonds and stocks were mostly lower too ahead of ECB and BoE rate decisions.
- China: domestic orders and consumption and manufacturing PMI drove higher (>50). A rebound in non-manufacturing activity was more decisive than expected by economists – but helped by a seasonal surge in spending for the Lunar New Year holiday.
- Japan Dec factory output inches down, retail sales beat forecasts
- German retail sales down 5.3% m/m in December & December import prices -1.6% m/m, +12.6% y/y.
- The USD Index – firmed, however, rising to 102.32 assuming the Fed reiterates a higher for longer stance.
- EUR – drifts to 1.0827.
- JPY – rise slightly at 20-DMA i.e. 130.4.
- GBP – struggling to break 1.2450.
- Stocks – US100 -1.96% at 11929, US500 off -1.30% and the US30 -0.77%. Losses were broadbased.
- USOil – down to $77.60, below 50-day SMA as the threat of further interest rate increases and ample Russian crude flows outweighed demand recovery expectations from China. OPEC+ panel is likely to recommend keeping the oil producer group’s current output policy unchanged when it meets tomorrow.
- Gold – at its 4th day lower, but still set for gain of 5% in January. Silver, platinum palladium are set for a monthly decline.
- BTC – held support at $22,400.
Today – German unemployment, EU prelim GDP, US CB and NZ employment data; Earnings: AMD, Exxon, Pfizer, General Motors, Mc Donald’s, Marathon Petroleum etc.
Biggest FX Mover @ (07:30 GMT) GBPAUD (+0.56%). Up to R2 of the day, i.e. 1.7586. MAs aligning higher, MACD histogram & signal line extends higher. RSI 71 & neutral, H1 ATR 0.00254, Daily ATR 0.01533.
Click here to access our Economic Calendar
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.