- American indices are experiencing slight corrections in today’s session. The S&P 500 is down 0.2%, the Dow Jones has dropped 0.3%, and the Nasdaq 100 is losing 0.8%.
- Several U.S. banks reported strong earnings. Morgan Stanley delivered a positive surprise with better-than-expected revenues, investment income, and earnings per share, resulting in a nearly 3% rise in its stock price.
- European markets ended the session in positive territory. The CAC 40 gained 2%, driven by strong performance from fashion sector companies after Richemont (owner of Cartier) reported surprisingly strong sales figures. The UK’s FTSE 100 also posted solid gains, rising 1.1%.
- Minutes from the European Central Bank’s (ECB) latest meeting suggest growing confidence that the eurozone will return to its 2% inflation target by 2025. Stable inflation readings in Q1 could pave the way for monetary policy easing.
- Inflation in Germany rose in December as expected (2.8%, up from 2.4%).
- Manufacturing data from the UK fell short of expectations. Industrial production in November decreased by 0.4% m/m (vs. forecasts of 0.0% m/m; prior: -0.6% m/m). GDP grew 1.0% y/y (vs. expectations of 1.5%; prior: 1.1%) and increased 0.1% m/m (vs. forecasts of 0.2%; prior: -0.1%). Monthly price dynamics also showed a rebound (0.7%, up from -0.7%).
- The MPC kept interest rates unchanged today, with the reference rate remaining at 5.75%. This decision had little market impact, aligning with the National Bank of Poland's recent narrative.
- U.S. retail sales grew slightly slower than expected, increasing 0.4% m/m (vs. forecasts of 0.6%; prior: 0.7%).
- New jobless claims in the U.S. totaled 217,000, slightly higher than forecasted (projections: 210,000; prior: 201,000). These figures somewhat weaken the narrative of a significantly stronger labor market in the U.S.
- U.S. gas inventories fell less than expected. Weekly stock changes showed a decline of 258 billion cubic feet (vs. forecasts of -260 billion). In response, gas contracts initially declined, but with forecasts of extreme cold in the U.S. next week, prices surged in the final hours of the session, with contracts now up 2%.
- Cryptocurrencies had a mixed session. The biggest gains were seen in Ripple (+8.3%) and Chainlink (+6.75%), while Bitcoin (-0.3%) and Ethereum (-3.2%) posted losses.
- Brent and WTI crude lost 2.5% and 1.7%, respectively, retreating from yesterday’s highs amid speculation that Donald Trump might ease the sanctions on Russian oil introduced on Monday by Joe Biden’s administration.
- In the forex market, the Dollar Spot Index saw a slight correction (-0.08%). The Japanese yen posted the strongest rebound against the dollar (+0.75%), while EUR/USD climbed back above 1.03 (+0.12%).
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