Economic Indicators & Central Banks:
- An eyepopping January jobs report capped off a huge week of events that ended with fresh record highs on Wall Street – FOMC indicated it was done with tightening.
- Dollar up as any hopes for a March rate cut were wiped out. Meanwhile, further evidence of the robust economy added to the growing optimism for 2024 after 2023 ended on a high note.
- The China Securities Regulatory Commission has announced its commitment to intensifying the enforcement of measures targeting offenses like market manipulation and malicious short selling. Simultaneously, it aims to direct a greater influx of medium and long-term funds into the market.
- Market sentiment was also negatively impacted by remarks from former President Donald Trump, who suggested the possibility of imposing tariffs exceeding 60% on imports of Chinese goods if he were to be re-elected.
- German trade surplus widened, but exports plunged – Germany’s export oriented model is struggling with geopolitical tensions.
Market Trends:
- Treasuries fell, extending Friday’s selloff.
- Massive earnings beats from Meta (20%) and Amazon (+7.87%) saw the US major Indices surging by more than 1%, while Nvidia closed 4.74% higher.
- Asian stocks were mostly lower as Chinese shares extended declines despite a series of stimulus measures and the securities regulator’s latest pledge to shore up the market. – the FED, China’s property sector & tepid investor sentiment are all pressuring the Chinese equity market.
- European futures are also narrowly mixed, while US futures are posting broad losses.
- Today: January PMI data for France, Germany, UK & Eurozone and US ISM Services.
Financial Markets Performance:
- The USDIndex held gains, just a breath below 104, while EURUSD drifted below 1.0800. GBPUSD held in December’s range.
- The Yen crept lower to trade above $148.
- USOIL steadies above $72 as the US vowed more strikes against Iran’s forces while the Houthis promised to retaliate against bombardments over the weekend.
- Gold weakened!
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Andria Pichidi
Market Analyst
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