Daily Summary: US500 at new all-time highs 🚀

9:57 pm 7 February 2024

  • Today's session in European stock markets is marked by moderate declines. The German DAX index lost 0.67%, and the French CAC 40 fell by 0.36%. The Polish WIG20 index, however, showed unusual resilience in the face of the general downward trend, gaining 0.65% and becoming a leader among other European indices.

  • In contrast to European markets, American indices are faring better. NASDAQ is currently up 0.7%, and the S&P 500 has risen by over 0.66%. The US500 index has crossed the 5000 points barrier, setting new all-time highs.

  • Fed's Kashkari stated that the current monetary policy may not be as pressure-inducing on demand as it may seem. Regarding inflation data, he noted that a few more months of good readings will allow for certainty in returning to the 2% level. If the job market remains strong, cutting interest rates will be a relatively slow process, he added. Kashkari suggests that for now, 2-3 interest rate cuts this year seem appropriate, while the market is still pricing in about 5 such cuts.

  • In the banking sector, uncertainty surrounding the liquidity risk of New York Community Bancorp is prominent. The bank's shares lost even 20% today, but comments from the President and bank deposit data somewhat calmed the market. Currently, losses have been reduced to "merely" 1%.

  • Riksbank published at 09:30 today the minutes from its monetary policy meeting held on January 31, 2024. The document indicates that Riksbank members are not in favor of rapid interest rate cuts and prefer to wait for greater certainty that inflation is heading in the right direction. The SEK gained following these statements.

  • In the FX market, the British pound and the Canadian dollar are currently performing the best. Significant sell-offs are observed in the Swiss franc.

  • In the commodities market, cocoa continues to record massive gains, with an intraday increase of 3.5%. Natural gas notes a 1.5% decline, while crude oil gains just over 0.5% due to higher US crude inventory data but lower data for other petroleum products. Precious metals are under pressure today, with palladium currently losing 5.5% and silver 0.5%.

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.

Share:
Back

Join over 1 400 000 XTB Group Clients from around the world.