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

01:53 25 มกราคม 2024
  • 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%.

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