Morning wrap (05.01.2023)

06:55 5 January 2023
  • US indices finished yesterday's trading higher in spite of release of hawkish FOMC minutes from December meeting. S&P 500 gained 0.75%, Dow Jones added 0.40% and Nasdaq moved 0.69% higher

  • FOMC minutes showed that no member of Federal Reserve expects a rate cut in 2023. There were no discussion on exact terminal rate level

  • Indices from Asia-Pacific trade mostly higher today. Kospi and Nikkei traded higher, S&P/ASX 200 traded flat and Nifty 50 dropped. Indices from China traded 1-2% higher

  • DAX futures point to a higher opening of the European cash session today

  • UK Prime Minister Sunak said that government will prepare legislation that will allow employers to sue unions and sack employees in response to strikes. The move comes as wave of strikes in the United Kingdom is spreading

  • According to Reuters report, Chevron is struggling to resume operations in Venezuela due to inadequate infrastructure and whole process of breaking back Venezuelan oil to the markets is taking slower than planned

  • New car registrations in the United Kingdom increased 18% in December, marking fifth straight month of increases

  • According to Wall Street Journal, Amazon will layoffs around 17 thousand employees, up from 10 thousand rumored earlier. Layoffs will be mostly made in company's corporate ranks rather than in warehouse staff. According to Bloomberg, company confirmed it plans to lay off "just over 18 thousands workers"

  • API report pointed 3.3 million barrels build in US oil inventories (exp. +2.2 mb)

  • Chinese services PMI for December moved from 46.7 to 48.0 (exp. 46.8)

  • Cryptocurrencies are trading mixed today - Bitcoin drops 0.1%, Ethereum trades 0.2% lower and Dogecoin gains over 2%. Chiliz gains over 10%

  • Energy commodities trade mixed - oil gains and natural gas drops

  • Precious metals are taking a pause in recent upward move. Gold and silver trade flat, platinum drops 0.4% and palladium gains 0.6%

  • NZD and USD are the best performing major currencies while GBP and CAD lag the most

In spite of FOMC minutes being rather hawkish, USD index (USDIDX) trades little changed compared to pre-release levels. Index continues to trade a touch above the 104.00 resistance zone but struggles to launch an bigger upward move. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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