- Wall Street indices slumped during cash session yesterday, reacting to disappointing tech earnings released on Tuesday evening and to yesterday's FOMC meeting
- S&P 500 dropped 1.61%, Nasdaq slumped 2.23% and Dow Jones closed 0.82% lower. Small-cap Russell 2000 plunged 2.63%
- FOMC left interest rates unchanged and did not make any adjustments to the pace of quantitative tightening. Fed Chair Powell strongly hinted during the post-meeting press conference that Fed may not have enough confidence by March meeting to cut rates
- Goldman Sachs now expects the first Fed rate cut to be delivered at May meeting. JPMorgan sees first rate cut in June, but does not rule out possibility of a May cut. Fitch does not expect cuts until June or July meetings
- Indices from Asia-Pacific traded mixed today - Nikkei dropped 0.9%, S&P/ASX 200 traded 1.2% lower, Kospi rallied 1.7% and Nifty 50 added 0.3%
- Indices from China traded mixed in spite of Chinese President Xi urging for quicker expansion of productive forces
- European index futures point to a lower opening of the cash session on the Old Continent today
- United States conducted strikes on Houthi drone sites in Yemen overnight
- Bank of Japan purchased government bonds worth 5.95 trillion JPY in January 2024, the smallest monthly purchase since June 2023
- Japanese manufacturing PMI index ticked higher from 47.9 to 48.0 in January (exp. 48.0), confirming flash release
- Chinese manufacturing PMI index stayed unchanged at 50.8 in January (exp. 50.7)
- Australian building approvals slumped 9.5% MoM in December (exp. +1.0% MoM)
- Cryptocurrencies trade lower this morning - Bitcoin drops 1.2%, Ethereum trades 0.8% lower and Dogecoin declines 0.3%
- Energy commodities trade higher - oil gains 0.1% while US natural gas prices trade 1% higher
- Precious metals pull back - silver drops 0.2%, platinum trades 0.3% lower and palladium declines 0.4%. Gold is an outperformer with 0.2% gain at press time
- USD and JPY are the best performing major currencies, while AUD and CHF lag the most
S&P 500 futures (US500) dropped to the lowest level since January 19, 2024 after Fed Chair Powell hinted that March rate cut is not the base case scenario. Source: xStation5
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.
