- The ISM index for services rises for January to 53.4 with an expectation of 52 and the previous level of 50.5. We have a clear rebound in the sub-index for employment, new orders and, above all, prices. The price sub-index rises all the way up to 64 points, which could signal growing inflationary pressures
- In response to another very good data, we saw a clear strengthening of the dollar. EURUSD fell around the 1.0735 level, with the pair at its lowest since mid-November
- PMI indices from EMU countries performed slightly better than initial readings, but still most point to recession. The upward pressure on economic activity is only in Spain and Italy
- Earlier over the weekend, an interview with the Fed chief was released, indicating that he sees no chance of a March interest rate cut. This could be the result of very good data from the US labor market for January
- Kashkaari indicated in a statement today rather the need to keep interest rates high for longer. Goolsbee, on the other hand, indicated that a cut in March is unlikely, but he certainly would not rule out the timing 100%
- Today during the Asian session we saw a bump in the Chinese stock market. The CSI1000 small-cap index was losing as much as 9% at one point, due in part to the derivatives market situation and short selling. It's worth mentioning that the following week we have the Chinese New Year celebrations and many investors are trying to get out of positions before the break in trading, adding to the anxiety.
- At the end of the session, however, stocks scored a clear rebound. The CH50 futures contract was up 2.5%, and CHN.cash was up 2.0%.
- After initial declines, we are also seeing a clear rebound in the oil market. WTI and Brent are gaining more than 1%. Interestingly, there were a number of airstrikes in Middle Eastern countries over the weekend, but this did not lead to a significant increase in tension in the oil market. It's also worth mentioning possible sizable supply restrictions on heavy oil in Russia, which could affect fuel market tensions in the weeks ahead
- Gold drops 0.5% on the wave of the strong dollar, although we have seen an attempted rebound in recent hours, along with a slight pullback in yields
- US30 drops 0.3%, and US100 drops 0.2%. Smaller companies are losing heavily, as US2000 loses more than 1%.
