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Wall Street indices extend their gains for the fifth consecutive day. The US500 is up 0.50% to 4920 points, and the US100 is up 1.10% to 17750 points.
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The positive mood is supported by the ongoing quarterly earnings season. Technology sector companies, especially high-profile ones like Netflix, are again surprising with relatively good results.
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After today's session closes, investors will receive reports from Tesla (+0.30%) and IBM (-0.30%). Analyst and investor expectations for Tesla's results are somewhat worse, as the company had a tough Q4, and forecasts for 2024 are moderate.
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Index gains are supported by a decline in the dollar and yields on US Treasury bonds. The dollar is one of the weakest G10 currencies today despite strong US PMI data.
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The US PMI report for January was much better than expected, confirming a strong economy amidst high interest rates. Details of the report:
- Manufacturing PMI: current 50.3; forecast 47.9; previously 47.9;
- Composite PMI by S&P Global: current 52.3; previously 50.9;
- Services PMI: current 52.9; forecast 51.0; previously 51.4;
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The dollar initially strengthened after the publication, but then the upward movement was erased.
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The UK PMI report was also better than expected, though the manufacturing sector remains below the 50-point threshold:
- Services PMI: current 53.8; forecast 53.2; previously 53.4;
- Manufacturing PMI: current 47.3; forecast 46.7; previously 46.2;
- Composite PMI: current 52.5; forecast 52.2; previously 52.1;
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The Bank of Canada decided to keep interest rates unchanged at the current level of 5.00%, in line with market expectations.
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US inventories fell by 9.2 million barrels per day. Expected: -1.4 million barrels; previously: -2.5 million barrels. This is partly due to a drop in production of 1 million barrels per day compared to the previous week, due to the winter attack, which lowered production in some regions.
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However, gasoline inventories rose by 5 million barrels, related to fewer trips in the US during the winter period. An increase of 2 million barrels was expected, previously it was 3 million barrels.
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Cryptocurrencies have slowed their recent declines, but prices remain close to local lows. Bitcoin is trading today with little change in the range of 39500-40500 USD, while Ethereum records slight declines of around 0.80-1.00%.
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