Morning wrap (28.01.2022)

7:55 AM 28 January 2022
  • Wall Street indices finished yesterday trading lower with the tech sector underperforming the most. S&P 500 dropped 0.54%, Dow Jones finished flat and Nasdaq slumped 1.40%. Russell 2000 plunged 2.29%

  • Trading in Asia was mixed today - Nikkei, S&P/ASX 200 and Kospi gained around 2% while Chinese indices traded 0.2-1.0% lower

  • DAX futures point to a slightly lower opening of today's cash session in Europe

  • US futures gained during the overnight trade supported by upbeat after-hours earnings reports

  • Apple jumped 5% in after-hours trading following the release of solid earnings for Q4 2021. Revenue jumped 11% YoY to $123.9 billion (exp. $118.66 billion) while EPS came in at $2.10 (exp. $1.89). CEO Tim Cook said that he expects solid sales growth in Q1 2022 but the company did not provide official guidance

  • Shares of Visa jumped over 5% in after-hours trading following the release of Q4 2021 earnings. Company's revenue exceeded $7 billion during a single quarter for the first time in history. EPS reached $1.83 (exp. $1.70)

  • According to CNN report, Biden told Ukraine President Zelensky that Russian invasion looks almost certain now and that Ukraine needs to prepare for impact. Biden also reaffirmed US readiness to help

  • Cryptocurrencies are trading higher following  news saying that Biden administration is reportedly preparing strategy to regulate cryptocurrencies

  • French GDP growth reached 0.7% QoQ in Q4 2021 (exp. 0.5% QoQ)

  • Precious metals drop. Platinum is an exception and manages to post small gain

  • Oil is trading a touch lower with Brent hovering near $88.50 handle

  • CAD and GBP are the best performing major currencies while JPY and USD lag the most

While the US dollar is one of the worst performing major currencies today, it was one of the top performers yesterday. EURUSD took a hit on USD strengthening and plunged below the 1.1200 handle. The main currency pair is now trading in the 1.1150 area - the lowest level since early-June 2020. Source: xStation5

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