Daily summary: GOLD gains 0.7% driven by weakening US dollar 📈Profit-taking weighs on Wall Street🗽

• The session in Europe was dictated by buyers in the initial phase, but sellers took control. Germany's DAX, Britain's FTSE all lost ground. France's CAC49 gained nearly 0.5%
• Chinese assets rose after Trump delivered positive news following his meeting with Xi Jinping. He conveyed that he may seek an agreement with the Chinese leader and 'would prefer not to impose tariffs on China'. ADRs of Chinese companies PDD Holdings gain nearly 7% and Alibaba rose 3%. CHN.cash and HK.cash Chinese index contracts gain in the range of 2%

The Eurodollar gains nearly 0.8% today on the wave of yesterday's 'dovish' statements by Trump, who announced downward pressure on oil prices and a conversation with Federal Reserve Chairman Powell about potential rate cuts. Also, lower than expected US PMI weakened the US dollar. Preliminary PMI readings from Europe today showed partial improvement - especially in Germany and, surprisingly, also in the UK.

• Germany industrial PMI: 44.1 (expected: 42.7; previous: 42.5)
• Germany services PMI: 52.5 (expected: 51.0; previous: 51.2)
• France industrial PMI: 45.3 (expected: 42.5; previous: 41.9)
• France Services PMI: 48.9 (expected: 49.4; previous: 49.3)
• United Kingdom Manufacturing PMI: 48.2 (expected: 47; previous: 47)
• UK Services PMI: 51.2 (expected: 50.9; previous: 51.1)

Wall Street indexes are posting limited declines today, with the Nasdaq 100 (US100) contract losing nearly 0.7%, on a near 3% retreat in Nvidia shares and weakness in the semiconductor sector, where sentiment was partly 'spoiled' by weaker quarterly results from Texas Instruments.

• Intuitive Surgical shares lose nearly 4% despite record earnings and sales; the company outlined that it expects lower-than-expected y/y growth in the number of procedures in 2025.
• Meta Platforms shares gain more than 1.5% and rise to new historic highs. The company is scaling up its artificial intelligence ambitions, announcing plans to spend $60-65 billion in capital expenditures for 2025 - a stunning 70% increase from previous guidance. 
• Gold gains nearly 0.7%, riding the wave of a 0.6% decline in the dollar index, which was partly 'hurt' by weaker readings from the US economy. Yields on 10-year US bonds retreat only slightly to 4.63%.

United States PMI report for January:

• Services PMI: actual 52.8 vs. forecast 56.5; previous 56.8;
• Composite PMI by S&P Global: current 52.4 vs. forecast 55.6; previously 55.4;
• Manufacturing PMI: current 50.1 vs. forecast 49.8; previous 49.4;

University of Michigan Consumer Sentiment and Inflation Expectations Report for January:

• Michigan Consumer Sentiment Index: 71.1; forecast 73.2; previously 74.0;
• Michigan 5-year inflation expectations index: 3.2%; forecast 3.2%; previously 3.3%;
• Michigan 1-year inflation expectations index: 3.3%; forecast 3.2%; previously 3.3%

• Agricultural commodities mostly losing ground. Chicago (CBOT) wheat futures lose nearly 2%; wheat and soybeans retreated nearly 1% Copper, zinc and other industrial metals saw very limited volatility today
• Cryptocurrencies are trading up at the end of the week, with Bitcoin approaching $107,000. ETFs have been accumulating Bitcoin for the last 6 consecutive sessions, although the scale of positive net inflows fell to $177 million on Thursday, January 23
• Vladimir Putin expressed his willingness to negotiate with the U.S. administration and cited good relations with Trump based on the 'interests' of both countries.

Source: xStation5