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Sentiment after the long weekend on Wall Street is clearly mixed. The S&P500 is trading flat – most of the companies in the index are recording gains, but today's result is weighed down by weak performance from the Magnificent 7 (META.US: -3.7%, AMZN.US: -2.1%, GOOGL.US: -1.2%, TSLA.US: -1.3%). The Nasdaq is turning around (-0.38%) after breaking out above the upper boundary of a consolidation that has been in place since December, the DJIA is down by 0.2%, and the Russell 2000 is the only one spending the session in the green (+0.32%).
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Intel’s (INTC.US) stock is up more than 9.5% following reports that Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom are considering separate transactions that could split the American chip giant into two entities.
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European indices continue to extend their gains. The German DAX is up (+0.2%), the French CAC40 (+0.21%), the Italian FTSE MIB (+0.59%), the Spanish IBX35 (+0.98%), and the Swiss SMI (+0.15%). The British FTSE 100 recorded a minimal loss (-0.01%).
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The economic sentiment in Germany according to ZEW significantly improved in the last month (26, forecast: 20, previously: 10.3).
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Inflation in Canada rebounded in January in line with expectations to 1.9% (previously: 1.8%).
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On the FX market, the U.S. dollar is dominating today (USDIDX: +0.48%). The USD was most resisted today by the CAD (USDCAD: +0.01%), supported by the higher inflation reading in Canada, and the Australian dollar (AUDUSD: -0.11%) following hawkish comments from Michelle Bullock from the RBA in justification for today’s 25bp rate cut in Australia.
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Cryptocurrencies are slipping today following comments by MicroStrategy CEO Michael Saylor to CNBC, where he expressed disappointment with institutional support for Bitcoin, which is down today to 93,800 (-2.73%). Ethereum is experiencing an even bigger correction (-5.27%), while smaller cryptocurrencies are declining amidst a scandal involving the President of Argentina, who promoted one of the coins on his social media.
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Precious metals continue to gain due to geopolitical uncertainty. Gold has completely erased the recent correction and is back to 2,933 USD per ounce (+1.26%). Silver adds 1.53%, and platinum and palladium both rise by 0.15%.
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Energy commodity contracts are also recording gains. NATGAS is up 10%, Brent is up 0.7%, and WTI is up 0.65%.
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