Banque Bemo L : Daily Markets Brief

Daily Market Brief

January 5th 2023

FOREIGN EXCHANGE MARKETS

(Sources: Bloomberg / Forexlive)

EURUSD

The EUR/USD pair witnessed selling pressure after failing to surpass the crucial resistance of 1.0630. The major currency pair has slipped to near the round-level support of 1.0600 as the risk appetite of the market participants has trimmed. S&P500 futures have surrendered half of their Wednesday's recovery as anxiety among market participants is accelerating ahead of the United States Nonfarm Payrolls (NFP) data.

GBPUSD

The GBP/USD pair is displaying topsy-turvy moves around 1.2050 in the Asian session. The Cable asset has turned sideways as investors are awaiting the release of the Automatic Data Processing (ADP) Employment data, which is scheduled for Thursday before the release of the United States Nonfarm Payrolls (NFP) data.

USDJPY

The USD/JPY pair has picked bids after a corrective move below the crucial support of 132.00 in the Tokyo session. The asset has displayed a recovery as the risk-off impulse has rebounded firmly amid soaring anxiety ahead of the United States Employment data.

INTERNATIONAL EQUITY MARKETS

(Sources: Bloomberg / Reuters)

UNITED STATES OF AMERICA

The S&P 500 finished higher on Wednesday but below its session peak after volatile trading following the release of minutes from the Federal Reserve's last meeting, which sowed officials laser-focused on controlling infaltion even as they agreed to slow their interest rate hiking pace.

EUROPE

European shares extended gains on Wednesday as a lower inflation reading from France boosted sentiment, while investors awaited euro zone business activity data and minutes from the U.S. Federal Reserve's last meeting. Euro zone recession may not be as deep as feared - PMI

ASIA

China stocks rose on Thursday as investor hopes for a strong economic recovery in 2023 dwarfed worries over COVID spike, with authorities vowing to support growth.

MUST READ

(Source: Bloomberg/ Forexlive)

Fed officials see higher rates for 'some time' ahead

Federal Reserve officials are committed to fighting inflation and expect higher interest rates to remain in place until more progress is made, according to minutes released Wednesday from the central bank's December meeting. At a meeting where policymakers raised their key interest rate another half a percentage point, they expressed the importance of keeping restrictive policy in place while inflation holds unacceptably high. "Participants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to 2 percent, which was likely to take some time," the meeting summary stated. "In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy." The increase ended a streak of four consecutive three- quarter point rate hikes, while taking the target range for the benchmark fed funds rate to 4.25%-4.5%, its highest level in 15 years. Officials also said they would focus on data as they move forward and see "the need to retain flexibility and optionality" regarding policy. Officials further cautioned that the public shouldn't read too much into the rate- setting FOMC's move to step down the pace of increases.

Fx rates	Last	High	Low	% Daily	% Weekly	% YTD
EUR-USD	1.0608	1.0631	1.0601	0.04	-0.50	-0.91
GBP-USD	1.2031	1.2078	1.2022	-0.20	-0.20	-0.43
USD-JPY	132.32	132.63	131.69	-0.23	0.54	-0.91
USD-CHF	0.9303	0.9308	0.9280	0.05	-0.76	-0.62
Commodities	Last	High	Low	% Daily	% Weekly	% YTD
Silver	23.65	23.92	23.62	-0.44	0.49	-1.25
Crude Oil	73.66	74.08	73.11	1.13	-6.71	-8.22
Bitcoin	16817.22	16872.93	16809.40	-0.03	#N/A N/A	#N/A N/A
Etherium	1250.48	1259.45	1249.27	-0.16	#N/A N/A	#N/A N/A
Period		1 M	3 M			12 M
EURIBOR		1.85	2.17			3.32
* USD LIBOR rates will be discontinued after June 30, 2023 and will be replaced by SOFR
Notes/Bonds		2 Y	10 Y			30 Y
US		4.39	3.71			3.82
BTP - BUND		0.41	2.01			2.16
GILTS		3.46	3.49			3.82
Index	Close	% Daily	% M	YTD	Futures	% Change
S&P	3852.97	0.75	-3.65	0.35	3865.25	-0.25
Nasdaq	10458.76	0.69	-6.95	-0.07	10958.50	-0.40
DJ EuroStoxx50	3973.97	2.36	0.44	4.75	3968.00	-0.33
FTSE 100	7585.19	0.41	0.23	1.79	7560.50	-0.15
CAC 40	6776.43	2.30	1.19	4.68	6758.50	N/A
DAX	14490.78	2.18	0.30	4.07	14516.00	-0.23
IBEX 35	8559.80	1.93	2.27	4.02	8531.10	N/A
FTSE MIB	24860.56	1.74	1.27	4.87	24815.00	N/A
Nikkei	25820.80	0.40	-7.19	-1.05	25780.00	0.66
Hang Seng	20793.11	1.25	7.86	6.43	21112.00	0.87
DFM General	3329.41	0.03	-0.63	-0.17	N/A	N/A
MSCI Tadawoul	10531.90	-1.21	1.08	0.51	N/A	N/A
	PRIOR_CLOSE_MID	CHG_PC CHG_PC CHG_PCT_
Leb. Mrkts	Closing Px	High	Low	% Daily	% Weekly	YTD
Solidere B	59.70	60.00	58.50	2.49	-0.42	-1.08
		MAIN WEEKLY EARNINGS		(Source: Nasdaq)
Company	Ticker	Market Cap	Date	Time	Estimate	Year Ago
Constellation Bran	STZ US	$42.4 B	05-Jan-23	Pre-mkt	2.92	3.12
Walgreens Boots	WBA US	$34.1 B	05-Jan-23	Pre-mkt	1.14	1.68
Schnitzer Steel Ind	SCHN US	$868.3 M	05-Jan-23	Pre-mkt	-0.47	1.58
AngioDynamics	ANGO US	$534.2 M	05-Jan-23	Pre-mkt	-0.01	-0.02
Greenbrier Compa	GBX US	$1.1 B	06-Jan-23	Pre-mkt	0.47	0.32
		ECONOMIC CALENDER		(Source: Forexlive)

(05-01-23) DE- Trade Balance s.a. NOV

(05-01-23) GB- S&P Global/CIPS Composite PMI DEC

(05-01-23) US- ADP Employment Change DEC

(05-01-23) US- Goods and Services Trade Balance NOV; Initial Jobless Claims DEC

(05-01-23) CA- International Merchandise Trade NOV

(05-01-23) US- S&P Global Composite, Services PMI DEC

(06-01-23)DE-Retail Sales YoY NOV; Factory Orders s.a. MoM NOV

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