Morning wrap (31.01.2023)

07:01 31 January 2023
  • US indices finished yesterday's trading significantly lower. S&P 500 dropped 1.30%, Dow Jones moved 0.77% lower and Nasdaq traded almost 2% down. Russell 2000 dropped 1.35%

  • Indices from Asia-Pacific followed into footsteps of US peers and also traded lower. Nikkei dropped 0.4%, S&P/ASX 200 moved 0.1% lower, Kospi declined 1% and Nifty 50 traded 0.2% down. Indices from China traded up to 1% lower as well 

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

  • The International Monetary Fund boosted the forecast for global growth in 2023 from 2.7 to 2.9%. IMF reasons the decision with major economies being more resilient than thought and Chinese economy reopening

  • United States is reportedly considering cutting Huawei off American suppliers due on the back of security concerns

  • Japanese finance minister Suzuki said that it is too early to rule whether BoJ agreement needs to be revised or not

  • French GDP grew at a pace of 0.1% QoQ in Q4 2022 (exp. 0.0% QoQ)

  • Japanese industrial production dropped -0.1% MoM in December (exp. -1.2% MoM)

  • Japanese retail sales increased 3.8% YoY in December (exp. 3.1% YoY)

  • Australian retail sales dropped 3.9% MoM in December (exp. -0.2% MoM)

  • Australian private sector credit increased 0.3% MoM in December (exp. 0.5% MoM)

  • South Korean industrial production dropped 7.3% YoY in December (exp. -5.1% YoY)

  • Chinese manufacturing PMI jumped from 47.0 to 50.1 in January (exp. 49.8) while services gauge moved from 41.6 to 54.4 (exp. 50.2)

  • Cryptocurrencies resist risk-off moods seen on global markets today and trade higher. Bitcoin gains 0.3%, Ethereum adds 0.1% while Dogecoin rallies over 6%

  • Energy commodities trade lower with oil dropping around 0.4-0.5%

  • Precious metals pull back amid USD strengthening. Gold drops 0.4%, silver trades 0.7% down and platinum pulls back 0.8%

  • JPY and USD are the best performing major currencies while AUD and NZD lag the most

In spite of a much better than expected Chinese PMIs, indices from Asia-Pacific traded lower today. CHNComp is trading 2% lower on the day and is slowly approaching a 7,250 pts support zone. Source: xStation5

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