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On Tuesday, the US dollar index fell slightly within a narrow neutral range. There was no single trend in the US stock market. Investors continue to follow corporate reporting. Yesterday, oil quotes corrected down due to the growth of stocks in the US. Gold quotes updated the 9-month high, but failed to overcome the psychological level of $1940 per ounce.
Forex news
On Tuesday, the US dollar index fell slightly within a narrow neutral range. The United States S&P Global Manufacturing PMI (in manufacturing), as well as similar indexes in the services sector and the composite index for January turned out to be slightly better than expected. This provided support for the dollar index, but it still fell, because the same indicators of business activity in the Eurozone and Britain were better than the US ones. The euro and the British pound strengthened. This morning inflation data was released for Australia (+7.8% y/y), New Zealand (+7.2% y/y) and Singapore (+6.5% y/y). The exchange rate of the New Zealand dollar has not changed much. The Singaporean and especially the Australian dollar have strengthened noticeably, as relatively high inflation in these countries can stimulate the growth of rates of their central banks. The Bank of Canada (BoC) will meet today, at which it is expected to raise the rate from 4.25% to 4.5%.
Bitcoin quotes slightly corrected down. They are in a narrow range just below the psychological $23,000 mark. There are no important news on the crypto market yet. Nevertheless, the players are afraid of the continuation of the wave of bankruptcies in the crypto industry and are not particularly active.
Stock Market news
There was no single trend on the US stock market yesterday. The Dow Jones index rose for the 3rd day in a row, while the rest of the indices fell. Microsoft's quarterly financials were a little disappointing for investors. This caused a decrease in the shares of this company by about 1%. Arms manufacturers Raytheon Technologies (+3%), Lockheed Martin (+1.8%) and truck manufacturer PACCAR (+8%) were expectedly good. Today in the US is not expected to publish significant economic statistics. At the same time, the reporting of such large companies as Tesla, Abbott Labs, AT&T, IBM, Boeing and others will be released. Recall that only 72 companies from the S&P 500 list have now released reports. Based on them, Refinitiv predicts a decrease in total profits of the S&P 500 in the 4th quarter of 2022 by 2.9% y/y.
Commodity Market news
On Tuesday, oil quotes corrected down. The independent American Petroleum Institute reported an increase in US oil inventories for the week by 3.38 million barrels. This is noticeably more than expected (+0.9 million barrels). Despite the increase in stocks, U.S. West Texas Intermediate (WTI) is currently still trading above the $80/bbl psychological support level.
European natural gas quotes on ICE Dutch TTF have now fallen to $640 per 1,000 cubic meters. American gas quotes on Henry Hub have fallen just below the psychological level of $3 mmBtu (million metric British thermal units). Soy continues to get a little cheaper, but wheat and corn are showing good growth today.
Gold Market News
Gold quotes are correcting down today. They updated yesterday a 9-month high, but failed to overcome the psychological level of $1940 per ounce. Investors believe that the US Federal Reserve will limit the rate hike to 5% this year despite relatively high inflation (+6.5% y/y in December). This is one of the main factors in the demand for precious metals. The US 10-year Treasury note yield decreased to 3.45% per annum.