Daily summary: Global stocks rally loses momentum

9:00 PM January 22, 2021

  • European stocks extended yesterday's declines
  • US stocks retreat from records
  • US crude inventories jump for 1st time in 6 weeks

European indices finished today's session lower after weak flash PMI figures pointed that economic activity in Europe fell for the third month. Both the service and the manufacturing sector showed signs of weakness. Airline shares suffered the most, after European leaders announced yesterday that borders will remain open but any non-essential travel will be dissuaded in order to curb the spread of the pandemic. DAX 30 fell 0.4%, CAC 40 lost 0.60% and FTSE 100 finished 0.30% lower.

US indices are trading slightly lower, retreating from record levels. The Dow Jones fell 0.50% and both the S&P 500 and the Nasdaq lost around 0.3% on Friday. US stocks erased some of the early losses after manufacturing activity surprisingly jumped to its highest level in more than 13-1/2-years in early January. However initial optimism over earnings was dragged down by losses in blue-chip technology stalwarts Intel and IBM  following their quarterly results. Also investors reassessed the outlook for additional stimulus from the new Biden administration. Several Republicans express doubts about the need for another stimulus bill, especially the $ 1.9 trillion bill proposed by Biden. Meanwhile, Democratic Senator Joe Manchin criticized the size of the latest round of proposed stimulus checks. 

US crude futures are trading 1.40% lower around $52.42 per barrel, while Brent contract fell 1.10% below $ 56.00 per barrel. US crude oil inventories increased by 4.351 million barrels in the week ended January 15th, the first increase in six weeks and compared to analysts' expectations of a 1.167 million fall, according to the EIA report. Elsewhere, gold futures fell 0.70% to $ 1,856.00 / oz, while silver is trading 1.7% lower around $ 25.50 / oz. Bitcoin managed to erase some of the recent losses and is trading above $32,000 level.

USDCHF - looking at the D1 interval, one can see that the inverse head and shoulders formation is building up. The area near 0.8920 handle acts as a neckline and is key resistance for now. If buyers manage to break above it, an upward impulse towards 0.8990 could be launched. On the other hand, once sellers regain control, the support at 0.8760 may be at risk. Source: xStation5

The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back