Daily summary: Global indices mixed after PMI data, oil bounces off resistance

6:59 PM January 24, 2023
  • European indices finished today's session in mixed moods, with DAX closed almost unchanged at 15,100 as upbeat PMI data and policymakers comments reinforced bets that ECB will stick to its tightening path. 
  • Fresh PMI data showed the Eurozone business activity returned to growth after six successive months of decline, with business confidence jumping the most since the beginning of the pandemic.

  • ECB's Simkus said the central bank should keep raising interest rates by half a point.

  • ECB's Panetta: In March, the ECB will reassess its policy outlook in light of new projections 

  • Germany is to send Leopard tanks to Ukraine according to Spiegel citing sources.

  • Mixed moods prevail on Wall Street, where Dow Jones is trading 0.205 higher, while S&P500 and Nasdaq fell 0.10% and 0.15% respectively as investors digested several mixed earnings reports from several Dow Jones members including 3M and Johnson & Johnson and better than expected S&P Global PMIs.

  • Flash US PMIs released today showed that both services and manufacturing sectors rebounded in January which on one hand raises hopes that the US economy will avoid a  "hard landing" scenario, on the other hand both indexes still remain below 50pts, while their counterparts in Europe and Japan returned to expansion territory. 

  • After market close attention will focus on Microsoft, which will announce its quarterly figures.

  • In the forex market today, one can observe the weakness of the British pound, which depreciated 0.4% against the US dollar as the latest flash PMI survey from the UK pointed to the sharpest drop in business activity for two years, primarily reflecting a weaker service sector performance. Also, another report showed the UK government deficit hit a record high in December due to rising debt-interest payments and spending on energy support schemes.

  • However, GBPUSD is trying to regain strength in the second half of the day and is already rebounding more than 60 pips from today's low.

  • The US currency strengthened approximately 0.50% against the Japanese yen, however, that in the afternoon some part of the gain had been erased. Nearest resistance to watch is located at 131.65.

  • Upbeat moods can be spotted on the precious metals market amid lower yields and slightly weaker greenback. Gold  briefly jumped to $1942, a level not seen since the end of April 2022, while silver erased early losses and once again is moving towards $24.00 mark.

  • OIL.WTI price pulled back sharply after an unsuccessful attempt to break above the crucial resistance at $82.5. Currently, WTI is down 1.3%, while Brent trades 1.5% lower.

  • Major cryptocurrencies are rather muted on Tuesday, apparently awaiting catalyst for the next bigger move. Bitcoin hovers slightly below $23000 mark, while Ethereum oscillates around the $1620 level.

OIL.WTI bounced off the $82.5-$83.5 resistance zone. The nearest support to watch can be found around the $78.5 mark. Break lower could provide more fuel for the bears. Source: xStation5

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