Market Recap – Dollar shines;Gold in free fall as US consistently defies recession fears

Economic Indicators & Central Banks:

An eyepopping January jobs report capped off a huge week of events that ended with fresh record highs on Wall Street – FOMC indicated it was done with tightening.
Dollar up as any hopes for a March rate cut were wiped out. Meanwhile, further evidence of the robust economy added to the growing optimism for 2024 after 2023 ended on a high note.
The China Securities Regulatory Commission has announced its commitment to intensifying the enforcement of measures targeting offenses like market manipulation and malicious short selling. Simultaneously, it aims to direct a greater influx of medium and long-term funds into the market.
Market sentiment was also negatively impacted by remarks from former President Donald Trump, who suggested the possibility of imposing tariffs exceeding 60% on imports of Chinese goods if he were to be re-elected.
German trade surplus widened, but exports plunged – Germany’s export oriented model is struggling with geopolitical tensions.

Market Trends:

Treasuries fell, extending Friday’s selloff.
Massive earnings beats from Meta (20%) and Amazon (+7.87%) saw the US major Indices surging by more than 1%, while Nvidia closed 4.74% higher.
Asian stocks were mostly lower as Chinese shares extended declines despite a series of stimulus measures and the securities regulator’s latest pledge to shore up the market. – the FED, China’s property sector & tepid investor sentiment are all pressuring the Chinese equity market.
European futures are also narrowly mixed, while US futures are posting broad losses.
Today: January PMI data for France, Germany, UK & Eurozone and US ISM Services.

Financial Markets Performance:

The USDIndex held gains, just a breath below 104, while EURUSD drifted below 1.0800. GBPUSD held in December’s range.
The Yen crept lower to trade above $148.
USOIL steadies above $72 as the US vowed more strikes against Iran’s forces while the Houthis promised to retaliate against bombardments over the weekend.
Gold weakened!

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Andria Pichidi

Market Analyst

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