- US markets are experiencing broad weakness today, particularly in the technology sector. The Dow Jones is down 1.1% (42,525), with earlier losses of up to 700 points partially recovered. Major tech stocks are leading the decline, with Broadcom (-3.31%), Microsoft (-1.68%), and Salesforce (-1.74%) showing significant losses.
- NYSE and Nasdaq will close January 9th to honor Jimmy Carter. The former US president died yesterday at the age of 100.
- In economic data, US Chicago PMI came in significantly below expectations at 36.9 (forecast: 42.7), while Pending Home Sales showed unexpected strength, rising 2.2% MoM versus the forecast of 0.9%.
- European markets are mostly in negative territory, with major indices like FRA40 (-0.35%), UK100 (+0.04%), and DE40 (-0.40%) showing mixed performance. Spanish inflation data came in higher than expected at 2.8% YoY (forecast: 2.6%).
- ECB’s Stournaras said that “larger cuts shouldn’t be ruled out”, as medium-term eurozone inflation may go below the 2-percent target.
- ECB’s Holzmann, on the other hand, said over the weekend that rate cuts may be postponed in case of raised inflationary pressures from energy prices and even stronger depreciation of euro.
- Market breadth continues to deteriorate, with less than 60% of S&P 500 companies trading above their 200-day moving averages - marking the weakest level in 2024. The Magnificent Seven stocks are showing unusual weakness, with Apple down 1.68%, Meta declining over 2%, and NVIDIA dropping 0.31%.
- Boeing (BA.US) shares are down nearly 2% following news of a tragic crash involving a Boeing 737-800 in South Korea, resulting in 179 fatalities.
- Energy commodities are showing strong performance today. Natural gas (NATGAS) is surging 17.09% following NOAA's updated forecasts predicting significantly cooler temperatures in the US. Crude oil prices are also gaining momentum, with WTI up 1.50% to $71.25 and Brent rising 1.20% to $74.28.
- Precious metals are facing pressure across the board, with Platinum leading the decline (-1.44%), followed by Silver (-1.40%), Palladium (-1.21%), and Gold (-0.42%).
- In the cryptocurrency space, most major tokens are showing positive momentum, with Bitcoin recovering from early losses (+0.65%). Ethereum is up over+1.88% with Solana gaining 1%. MicroStrategy announced the acquisition of 2,138 Bitcoin tokens at an average price of $97,837.
- Currency markets show mixed performance, with most major pairs showing relatively modest movements. The Mexican Peso is notably weaker (-1.16%), while European currencies show slight weakness against the USD.
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