The first US session this week falls on Tuesday due to yesterday’s holiday. Investors seem at least slightly concerned. Valuation pressure stems mainly from worries about the condition of technology companies. Part of the market sees a serious threat to traditional business models, while others point to systemic risks related to excessive CAPEX. The situation is not helped by tensions remaining between Iran and the US, despite negotiations.
Futures on the main indices are down before the market open and shortly after the open. The biggest decliner is US100, down more than 0.6%, while the DOW futures are holding up best, with declines of around 0.3%.
Macroeconomic data:
- Canada’s January inflation was released. The reading came in below expectations, and the slowdown in price growth continues to deepen. Year-over-year CPI fell to 2.3%.
- ADP published the weekly change in employment in the US. The private reading suggests job growth of 10,300. This is an increase versus the turn of January and February, but the figure remains below average.
- The NY Empire State Index for the manufacturing sector beat expectations and fell to 7.1 from 7.7, versus an expected 6.4.
- The CB Employment Trends Index for January came in at 105 versus the previous reading of 104.27.
US100 (D1)
Source: xStation5
Buyers are struggling to regain the initiative in the index. The rebound from the 61.8% Fibonacci level was quickly pushed back down. Price remains below the 50 and 100 EMAs. The key level to defend is the 50% Fibonacci. If supply pushes the price noticeably below ~24,500, further correction can be expected, with a move toward the 200 EMA and the 61.8% Fibonacci level.
Company news:
- Norwegian Cruise (NCLH.US): The cruise ship operator is up about 6% following WSJ reports that Elliott Investments bought a significant stake.
- Zim Integrated Shipping (ZIM.US): The stock is up 35% after confirmation of the company’s acquisition by Hapag-Lloyd AG.
- Warner Bros (WBD.US): Shares are up 2% on reports that acquisition talks with Paramount and Skydance have reopened.
- Palo Alto (PANW.US): One of the cybersecurity leaders will publish its results today. The market expects Q4 EPS of USD 9.3–9.4 and at least USD 2.5 billion in revenue.
Gold loses 2.5% amid US - Iran trade negotiations and dollar strength 📉ANZ lifts outlook
Oil drops over 2% on possible Iran Deal 🛢️🔥
Hollywood on Edge: Another Round in the Battle for Warner Bros.
BREAKING: Inflation in Canada lower than expected!
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.
