- A highly anticipated series of macro readings from the Chinese economy came below expectations once again, leading to a strong sell-off on Chinese stock exchange. As a result, the Hang Seng Index lost nearly 3.8% today and approached levels near the November 2022 lows
- China's unemployment rate rose to 5.1% in December, compared to forecasts of 5% and 5% previously. Retail sales rose 7.4% versus 8% forecast and 10.1% previously. It is worth noting that the comparative period is December 2022, during which there were still many Covid restrictions in China
- China's Q4 GDP grew y/y by 5.2% vs. 5.3% growth expected and 4.9% previously. On a quarterly basis, GDP grew 1% vs. 1.05% forecast and 1.3% previously. China's industrial production rose 6.8% vs. 6.6% forecast and 6.6% previously
- China's new home prices fell -0.4% vs. -0.2% previously. Exports of products, excluding oil, from Singapore fell -2.8% m/m vs. -0.3% decrease previously and Baltic Dry Index fell again after the weakest week since 2008 (1324 points now vs 3200 points in December 2023)
- The mood in the Asian session was mostly weak. Recently gaining benchmarks from Japan posted modest losses, South Korea's KOSPI lost more than 2.8%. Index futures from China are trading down more than 3% today, with JAP225 contracts losing more than 1% despite a renewed 0.5% rise and USDJPY signaling favorable conditions for Japanese exporters
- Index futures in Europe are trading lower. Germany's DE40 loses 0.7% and Europe's benchmark EU50 is trading down 0.8%
- Wall Street reduced bets on rate cuts yesterday after a statement from the Fed's Waller put a question mark over whether market expectations for the scale of monetary easing in the US are realistic. The priced probability of a rate cut in March fell to about 65% from nearly 80% on Friday.
- Yields on 10-year U.S. bonds exceeded 4% yesterday, Wall Street indexes closed the session slightly lower, and the dollar index rose to its highest level since March. The dollar benchmark USDIDX is trading up 0.2% today and extends yesterday's streak
- Precious metals are still under pressure. Gold loses 0.5% and retreats to 2018 USD per ounce, silver loses almost 1%
- Morgan Stanley shares fell more than 5% yesterday on expectations of lower margins for the investment bank's wealth management business, wealth margins. Shares of rival Goldman Sachs rose slightly yesterday as profit exceeded expectations by nearly 50%.
- Bitcoin is losing nearly 1% today and retreating below $43,000 again. The sentiment of cryptocurrencies is mostly weak, with most projects posting small declines.
- Punchbowl reports that US President Biden will hold talks today with the leaders of the Democratic and Republican parties on additional funding for Ukraine war
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.
