- Precious metals continue the decline that began at the end of January. At the time of writing this summary at 8 p.m., gold is down more than 3.5% and testing the $4,650 per ounce mark, while silver is down more than 5%, falling below $79 per ounce.
- The event of the day is the partial shutdown of the federal administration in the United States, which occurred after Congress failed to reach an agreement on the budget. The paralysis of funding means the suspension of work at some state institutions and uncertainty for thousands of public sector employees.
- Nevertheless, the session across the Atlantic is proceeding in a very positive mood, with the major US indices posting strong gains at the start of the new month. The S&P 500 is up 0.6%, the Nasdaq is up 0.8%, and the Dow Jones is up nearly 1%.
- The session on the old continent was calm and positive, with the most important European indices recording significant gains. The German DAX gained 1%, the French CAC 40 almost 0.7%, and the British FTSE 100 ended the day up 1.2%. The Spanish IBEX 35 performed even better, closing up 1.2%.
- On the forex market, we are seeing a clear strengthening of the dollar against other major currencies. Capital that previously flowed into precious metals is once again flowing into the US dollar.
- USA: The final PMI for industry in January was 52.4, above the forecast of 51.9 and 51.8 a month earlier, indicating the continuing good condition of US industry.
- USA: The ISM index for US manufacturing in January was 52.6 points, significantly above market expectations, mainly due to strong growth in new orders. The data supports the dollar and suggests that the Fed may remain cautious about rapid interest rate cuts due to continuing price pressures.
- Canada: The PMI index for industry rose to 50.4 in January from 48.6 in the previous month, signaling a return to growth for the sector.
- We are seeing a real slump in the commodities market. Henry natural gas contracts (NATGAS) are losing more than 25% due to changes in the weather forecast.
- We are seeing a significant correction in the oil market. Brent crude is down about 5.5% to around $66 per barrel, while WTI crude is down nearly 6% to below $62 per barrel.
- The correction in oil is caused by Iran. Markets had expected a US attack last weekend.
- We are seeing a slight rebound in the cryptocurrency market. Bitcoin is up nearly 2% and approaching $78,500, while Ethereum is up nearly 1.3% and trading at $2,350.
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