Market Commentary January 24

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 U.S. the stock market is being torn between headline news anxieties, U.S. - China trade hiccups, Q4 earnings reports, and Brexit rumors. Early accumulations were lost when financials and technology traded big, however, then all moved higher when the DJI led the way to higher close. 

Soft mortgage numbers were rumored to have undertaken first strides; however, intraday market losses were insignificant. As we were entering the final hour, we saw the DJI continuing its run as U-tec, IBM, and P&G all show gains more than 5%. 

We can witness more consolidation today as we observe the investment capital continuing to flow towards America. On Friday this week, we will see the notoriously volatile Durable Goods data, and the New Home Sales number.

Other Market(s)

The Asian-Pacific market had already had a taste of the International Monetary Fund outlook, however, yesterday the BOJ (Bank of Japan) again clipped its inflation forecast, and that damaged the Yen currency, having already suffered the weekend news headlines, yesterday's price action managed to drift in light volume as the currency tapped the 110 handle.

Ultimately, the Nikkei225 index closed with a small minus 0.14% loss, yet much of the talk centered on the Yen. Again, the rumors that U.S. - China talks were not progressing as well as hoped continues to frighten the market, though more by the lack of transparency than anything else.

The Japanese currency weakness did support the exporters in the Nikkei index, however, its the trade talks that most are waiting for detail. Both the  H.K. Hang Seng and core Shanghai indices were not that much to post about as both finished more or less unchanged. 

The Indian Sensex index was clinging on to unchanged for much of the trading market session, yet then some large capitalization stocks missed its last year December projected numbers and the selling drove the Sensex index to close off nearly 1% on the day.

In Eurozone, the focus lingers on Brexit, and it seems as though that will continue the case for the remainder of our lives! - Hope not. Yesterday, the European Union negotiator Michel Barnier emphasized there are only two options – Theresa May or a no deal: we shall see.

The House utterances of possible setbacks as well as in Davos British Trade Secretary Liam Fox said he guessed there is a real chance of a divorce agreement sooner than later!

Whatever you hold true, Sterling took the lead yesterday and rallied plus 0.9% against the U.S. Dollar and that hit FTSE100 index which fell minus 0.85%. German DAX, French CAC 40, and FTSE MIB took all small losses in yesterday session and again in very light volume mind you. 

Financial market sector is beginning to weigh on the core indices as curve formation, and the general slowdown begins to reflect their price. Could be fun today as we will see a host of the economic numbers released. And we will hear from the European Central Bank following its interest rate decision.

This article was printed from TradingSig.com

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