Morning wrap (27.01.2022)

10:00 am 27 January 2022

  • US indices traded higher in the first half of yesterday's Wall Street session but erased all of the gains following the FOMC decision and Powell's presser. S&P 500 dropped 0.15%, Dow Jones moved 0.38% lower while Nasdaq finished flat

  • FOMC left rates unchanged yesterday and said it is committed to completing the QE taper in early-March. Fed said that it will be appropriate to hike rates soon

  • Fed Chair Powell said that possibility of increasing rates at every FOMC meeting cannot be ruled out

  • Market rates and USD jumped following Powell's presser with 2-year US yield topping 1.19%. US dollar index reached year-to-date highs

  • Derivatives markets now price in 5 Fed rate hikes this year

  • Stocks in Asia dropped in post-FOMC trading. Nikkei moved 3.1% lower, Kospi slumped 3.5% and S&P/ASX 200 dropped 1.8%. Indices from China traded 1-3% lower

  • DAX futures point to a big bearish price gap at the launch of today's trading session in Europe

  • United States warned Russia that Nord Stream 2 will not go ahead if it invades Ukraine

  • New Zealand CPI decelerated from 2.2% QoQ in Q3 2021 to 1.4% QoQ in Q4 2021 (exp. 1.3% QoQ)

  • Chinese industrial profits increased 4.2% YoY in December. Full-2021 profits increased 38% YoY

  • Tesla reported Q4 revenue at $17.72 billion (exp. $16.57 billion) and adjusted EPS of $2.52 (exp. $2.36). However, shares dropped 5% in after-hours trading amid company's warnings on supply chain situation

  • Intel reported Q4 revenue at $19.5 billion (exp. $18.31 billion) and adjusted EPS at $1.09 (exp. $0.91). Sales in cloud segment reached $10.1 billion and were higher than $9.6 billion expected

  • Precious metals and oil trade 0.5-1% lower today amid USD strengthening

  • USD and JPY are the best performing major currencies while NZD and AUD lag the most

US100 tried to break above the price zone at 23.6% retracement of post-pandemic recovery move but failed. Hawkish Fed deteriorated sentiment on equity markets, causing major indices to drop. Weakness persisted during the overnight trading and now US100 is testing recent low near 13,900 pts. 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.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.