Daily summary: US stocks mixed ahead of Big Tech results

9:18 PM January 26, 2021

  • European indices rebound on Tuesday
  • US stocks erase early gains
  • IMF Sees Brighter Economic Outlook

European indices rebounded today as strong quarterly results from Swiss wealth manager UBS and optimistic global economic outlook from IMF overshadowed concerns regarding the spread of the coronavirus. EU officials threatened to block AstraZeneca exports of COVID-19 vaccines outside of the bloc after the drug-maker confirmed that deliveries will be delayed within the next few weeks. EU competition regulators approved a € 2.9B pan-European battery project, responding to the growing demand for car and industrial batteries in the EU. Meanwhile, Italian Prime Minister Giuseppe Conte has resigned after losing his Senate majority. President Sergio Mattarella can ask Conte to try to form a broader coalition government, appoint a largely technical and temporary government, or dissolve parliament and call an election two years early. DAX 30 rose 1.7%, CAC40 gained more than 1% and FTSE finished 0.2% higher.

US indices failed to hold early gains and are swinging between gains and losses as investors digest a batch of upbeat quarterly earnings. J&J, 3M, American Express and Verizon all posted better than expected quarterly results while those from General Electric disappointed. Microsoft, Advanced Micro Devices and Starbucks will provide their quarterly earnings after the market close. Wednesday looks to be the key day of the week for US100 traders as Tesla, Apple and Facebook will report results for the final quarter of 2020. Tesla has delivered a record 499,550 vehicles in 2020, just slightly below the target of 500,000 and the report will show if the carmaker continues its streak of profitable quarters. Meanwhile, concerns regarding the passage of the $1.9 trillion stimulus package weighs on market sentiment. Senate Majority Leader Chuck Schumer said that an aid bill is unlikely before mid-March. Meanwhile the two-day Fed meeting on monetary policy also began today.

US crude futures are trading 0.50% lower around $52.50 per barrel, while Brent contract is trading flat near the $ 55.87 per barrel. Elsewhere, gold futures fell 0.20% to $ 1,852.00 / oz, while silver is trading 0.7% higher around $ 25.50 / oz. Bitcoin is trading below the $32,000 level.

GBPUSD – pair bounced off the upward trendline during today’s session and is currently testing major resistance at 1.3724. In case a break above occurs, the upward move may accelerate towards next resistance at 1.3936. On the other hand, breaking below  the aforementioned trendline and support at 1.3627 will invalidate the bullish scenario and another downward impulse towards 1.35 level could be launched. 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