Daily Summary: Wall Street consolidates. Cotton futures surges 4%

9:58 pm 27 February 2024

  • The Chinese Hang Seng index gained nearly 1% today, with the Asian session closing in a positive mood. During the European session, we observed a continuation of gains, with DAX up by 0.7% and CAC40 by 0.2%.

  • CPI data from Japan indicated a slowdown in core CPI inflation from 2.3% to 2.0% year-on-year, while economists expected a slowdown to 1.8% year-on-year. The main CPI inflation slowed from 2.6% to 2.2% year-on-year (1.9% was expected).

  • Today's session on Wall Street brings limited volatility as traders await key macro readings in the second part of the week, including the Fed's preferred US PCE inflation and global manufacturing PMI readings.

  • Key US benchmarks Nasdaq100 and S&P 500 lose 0.1% and 0.18% respectively. Dow Jones loses 0.4%, but Russell 2000 surges as much as 1.2%, signaling a still higher risk appetite on Wall Street.

  • Weaker US macro readings put pressure on the US dollar and 10-year treasury yields. However, the USDIDX slightly loses ground considering the weaker-than-expected US economic readings.

  • Orders for durable goods in January (-6.1% month-on-month vs. 4.5% forecast) and the consumer sentiment reading from the Conference Board (106.7 vs. 115 forecast and 110.9 previously) turned out lower than forecasts.

  • Regional Richmond Fed data turned out much better than expected, with a reading of -5 compared to the expected -9 and -15 previously.

  • Among the gaining American companies, lithium producers stand out, supported by recent comments from Pilbara Minerals. The Australian company indicated it is observing higher demand reported among customers; the market is also discounting information about the shutdown of lithium production by Chinese companies, which are closing factories due to low prices, reducing supply.

  • On the wave of successful quarterly results, we observe a significant increase in the shopping mall operator Macy’s and the airline Norwegian, which entered the new year with higher rates, record demand, and higher revenue forecasts.

  • Oil gains over 1.70% following news that OPEC+ is considering extending voluntary oil production cuts into the second quarter or even until the end of the year.

  • Bitcoin gains 4.60% to the level of 57000 USD, approaching its historical highs. Ethereum gains just over 1.80% to 3240 USD. Smaller cryptocurrency projects are recording significantly lower increases.

  • Gains in Bitcoin are again driven by positive inflows into ETFs, which totaled over 500 million dollars yesterday. At the same time, outflows from Grayscale continue to fall and are close to zero.

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.

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