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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Daily summary: Mixed earnings weigh on sentiment

18:45 25 January 2023
  • European indices closed today's session slightly lower, extending losses from the previous session, with DAX finishing below the 15,085 level dragged down by tech stocks, growth worries and expectations that the ECB will maintain its aggressive stance against inflation. 
  • The US and Germany both said Wednesday they would send dozens of tanks to Ukraine. Russia’s ambassador to Germany, Sergey Nechayev, called Berlin’s move an “extremely dangerous decision.”

  • Three major Wall Street indices slumped sharply at the beginning of the session, however buyers managed to erase some losses in the evening. Currently Dow Jones is trading 0.50% lower, while S&P500 and Nasdaq fell 0.7% and 1.0% respectively as disappointing earnings reports from Boeing and weak outlook from Microsoft added to worries about a possible recession.

  • The tech bellwether registered its slowest sales growth in more than six years and expects and issued a weak outlook for the Azure cloud-computing unit, which puts pressure on its rivals from cloud computing segment including Amazon.com (AMZN.US) and Alphabet (GOOGL.US). Later on market attention will focus on Tesla and IBM, which will announce their earnings after the close.

  • Precious metals erased early losses and are trading in green amid a weaker dollar. Gold hovers near recent highs around $1940, while silver rose nearly 1.0% and approaches $23.80 mark.

  • On Tuesday, the Australian dollar stood out positively against other currencies, gaining over 0.7% against the USD. AUDUSD is trading just below the 0.7100 level, which is near the highs of August 2022. Yen and the pound also have a solid session as both currencies strengthened against the USD around 0.45%. The euro and franc also appreciated against the greenback, however the scale of the move is smaller.

  • The Bank of Canada decided to raise interest rates by 25 bps as widely expected. However, the BoC announced the end of the policy tightening process, which further weakened the Canadian dollar. BoC's governor Macklem said this is a conditional pause, dependent on the economy developing broadly and in line with forecasts.

  • WTI.OIL is stuck below the crucial resistance zone around $81.00 per barrel. Today's mixed EIA report caused a temporary uptick in prices, however that move was quickly wiped out and at the end of the day, Brent crude is down 0.6% and WTI fell 0.3%.

  • Major cryptocurrencies moved lower in tandem with tech stocks. Bitcoin briefly fell to the local support zone around $22300, while Ethereum tested the $1515 mark, however buyers managed to erase the majority of losses later in the session.

EURGBP pair fell below the major support zone around 0.8810-0.8815, which according to the Overbalance methodology may negate the local upward trend. Source: xStation5

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