- 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%.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 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. XTB 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.
