Daily Summary: strong PMI data, US100 gains fueled by quarterly results ✨

Wall Street indices extend their gains for the fifth consecutive day. The US500 is up 0.50% to 4920 points, and the US100 is up 1.10% to 17750 points.

The positive mood is supported by the ongoing quarterly earnings season. Technology sector companies, especially high-profile ones like Netflix, are again surprising with relatively good results.

After today's session closes, investors will receive reports from Tesla (+0.30%) and IBM (-0.30%). Analyst and investor expectations for Tesla's results are somewhat worse, as the company had a tough Q4, and forecasts for 2024 are moderate.

Index gains are supported by a decline in the dollar and yields on US Treasury bonds. The dollar is one of the weakest G10 currencies today despite strong US PMI data.

The US PMI report for January was much better than expected, confirming a strong economy amidst high interest rates. Details of the report:

• Manufacturing PMI: current 50.3; forecast 47.9; previously 47.9;
• Composite PMI by S&P Global: current 52.3; previously 50.9;
• Services PMI: current 52.9; forecast 51.0; previously 51.4;

The dollar initially strengthened after the publication, but then the upward movement was erased.

The UK PMI report was also better than expected, though the manufacturing sector remains below the 50-point threshold:

• Services PMI: current 53.8; forecast 53.2; previously 53.4;
• Manufacturing PMI: current 47.3; forecast 46.7; previously 46.2;
• Composite PMI: current 52.5; forecast 52.2; previously 52.1;

The Bank of Canada decided to keep interest rates unchanged at the current level of 5.00%, in line with market expectations.

US inventories fell by 9.2 million barrels per day. Expected: -1.4 million barrels; previously: -2.5 million barrels. This is partly due to a drop in production of 1 million barrels per day compared to the previous week, due to the winter attack, which lowered production in some regions.

However, gasoline inventories rose by 5 million barrels, related to fewer trips in the US during the winter period. An increase of 2 million barrels was expected, previously it was 3 million barrels.

Cryptocurrencies have slowed their recent declines, but prices remain close to local lows. Bitcoin is trading today with little change in the range of 39500-40500 USD, while Ethereum records slight declines of around 0.80-1.00%.