analysis.hotforex.comMarket Update – January 31 -Stocks Lower; Techs Lead Drop

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Market Update - January 31  -Stocks Lower; Techs Lead Drop

Global Stocks extend lower, USD steady and Yields picked up across the curve with the short end underperforming in a bear flattener given the Fed views. The curve flattened to -72 bps before unwinding to -70 bps. The looming FOMC decision on Wednesday and expectations for a hawkish trimming in the rate path left bonds and stocks heavy with buyers sidelined. Concerns over upcoming earnings from Apple, Amazon, Alphabet, and Meta also weighed. The US100 slumped -1.96%. European bonds and stocks were mostly lower too ahead of ECB and BoE rate decisions.

Elsewhere:

• China:  domestic orders and consumption and manufacturing PMI drove higher (>50). A rebound in non-manufacturing activity was more decisive than expected by economists – but helped by a seasonal surge in spending for the Lunar New Year holiday. 


• Japan Dec factory output inches down, retail sales beat forecasts


• German retail sales down 5.3% m/m in December & December import prices -1.6% m/m, +12.6% y/y.


• The USD Index – firmed, however, rising to 102.32 assuming the Fed reiterates a higher for longer stance.


• EUR – drifts to 1.0827.


• JPY – rise slightly at 20-DMA i.e. 130.4.


• GBP – struggling to break 1.2450.


• Stocks – US100 -1.96% at 11929, US500 off -1.30% and the US30 -0.77%. Losses were broadbased. 
  
  
  

  
  
  
  

  



• USOil – down to $77.60, below 50-day SMA as the threat of further interest rate increases and ample n crude flows outweighed demand recovery expectations from China. OPEC+ panel is likely to recommend keeping the oil producer group’s current output policy unchanged when it meets tomorrow.


• Gold – at its 4th day lower, but still set for gain of 5% in January. Silver, platinum palladium are set for a monthly decline.


• BTC – held support at $22,400.

Today – German unemployment, EU prelim GDP, US CB and NZ employment data; Earnings: AMD, Exxon, Pfizer, General Motors, Mc Donald’s, Marathon Petroleum etc.

Biggest FX Mover @ (07:30 GMT) GBPAUD (+0.56%). Up to R2 of the day, i.e. 1.7586. MAs aligning higher, MACD histogram & signal line extends higher. RSI 71 & neutral, H1 ATR 0.00254, Daily ATR 0.01533.

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Andria Pichidi

Market Analyst

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Source: Market Update - January 31  -Stocks Lower; Techs Lead Drop