10:59 PM · 27 January 2023

Daily summary: Wall Street crawls higher amid signs of easing inflation

  • Highly anticipated data from the US turned out to be more or less in line with expectations
  • Core PCE inflation in December fell to 4.4% y/y (expected: 4.4% y/y; previously: 4.7% y/y), while the headline reading eased to 5.0% y/y y (expected 5.0% y/y; previously: 5.5% y/y)

  • The dollar strengthened against majority of G10 currencies, however the scale of movement is rather limited - EURUSD currency pair fell 0.25% and the GBPUSD dropped 0.12%

  • The main stock indices from the Old Continent finished Friday's session slightly higher as traders restrain themselves from taking too much risk. On the week, the DAX went up 0.6% and the STOXX 600 added 0.8%.

  • Upbeat sentiment prevails on Wall Street - Dow Jones is trading 0.25% higher, whileS&P500 and  Nasdaq rose 0.45% and  1.10% respectively.

  • On the corporate side, American Express soared 12%, after its upbeat earnings and 2023 revenue forecast. Intel plunged 7% after a dismal first-quarter outlook, while Silvergate Capital, the crypto-focused bank, plunged 22% after it suspended dividend payments as its stock has been falling since November.

  • Mixed moods prevail in the cryptocurrency market - Bitcoin is gaining nearly 1%, while Ethereum is trading near the flatline

  • Next week, investors' attention will focus on the decisions of the Fed, ECB and BoE as data from the US labor market. 

  • WTI crude futures reversed earlier gains and dropped over 1.5% to below $80 per barrel on Friday, amid prospects of still strong Russian supply.

  • Oil loadings from Russia's Baltic ports are expected to increase  by 50% from a month earlier in January mostly thanks to strong demand in Asia. Traders noted that Urals and KEBCO crude oil loadings from Ust-Luga over Feb. 1-10 may rise to 1.0 million tonnes from 0.9 million in the plan for the same period of January.

  • Precious metals trade mixed amid higher yields and stronger US dollar. Gold managed to defend crucial support at $1920, while silver failed to break above resistance at $24.00 and pulled back to $23.50 mark.

US100 hit a key resistance at 12,240 points where December 13 high is located. Break higher could lead to an extension of the uptrend towards the next resistance at 12830 points. Source: xStation5
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