Market Commentary January 23

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

The American futures market was trading weaker ahead of the cash opening as they followed both Asia-Pacific and Eurozone indices. Afternoon news headlines adding to the anxieties were that America had rebuffed a China preparatory talks proposal unquestionably shook confidence.

Yesterday market being the first trading day for the American markets to react to the China Gross Domestic Product released data, the slowdown forecast from the International Monetary Fund and the headlines coming from business handles in Davos, has seen values float in the ambiguity. 

It was presumably the fear eventually which saw the trading numbers, however, despite it being the Chinas lowest Gross Domestic Product in nearly 30 years, it is still up 6.6%! Ultimately, the market marked a small rebound at the closing hour, though only to prevent close at the day's low levels. 

The Nasdaq finished sharply lower on Tuesday session as it consolidates any of the rallies of last year's (December) low by declining and completing the trading day down minus 1.9%, while both the S&P500 and DJI indices were off about minus 1.3% respectively. The U.S. Dollar is gaining from its recent hit too, which sets it up beautifully for an exciting week.

Other Market(s)

The Asian-Pacific market had a noticeable impact due to the announced result over the weekend on Chinese economic slowdown, voiced by the International Monetary Fund, although at any length, we presently have a high-strung markets that is back searching for the bid! 

The Japanese Nikkei Index is reeling back from a one month's huge move with dealers looking to eliminate long holdings, even as the currency (Yen) expands small ground. The Nikkei index finally closed down minus 0.47% having spent much of the early morning session striving to hold-on on early gains.

Notwithstanding recent attempts by the Chinese government, the weight of risk seems to keep a heavy lid on prices with both core Shanghai and the H.K. HSI indices closing weaker. The H.K. Hang Seng index did manage a small bounce into the closing minus 0.7%, while the Shanghai index settled off 1.18%. The Chinese currency (CNY) is back above 6.81.

Eurozone bourses experienced pretty much from the similar fate as prices sailed throughout the trading session. Anxieties encompassing global growth, presumably overly exciting news from Davos, directed to play on market sentiment and that supported the safety play. 

The interest yields from core to periphery were depressed as the doubt edged the worried toward fixed-income. Earnings reports have been much weaker than anticipated and probably fastened by UBS’s fourth-quarter numbers adding to the mix. 

The financial sector was walloped across the board with prominent names - Santander, BNP Paribas, and HSBC all enduring significant losses yesterday. The market will expect more headline news coming from Davos today once we will hear business leaders conclude the International Monetary Fund’s conclusions and repeat China’s Gross Domestic Product number over and over. The Sterling rallied 0.6% following another referendum talk.


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