Market Update – January 20 – Equities weaker, Gold rallies, Yields cool

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Equity markets fell again (Nasdaq -1.15%) Financial and technology companies led the decline, U.S. dollar slipped like Yields – slides from highs, oil higher again, gold The day’s asset rose to $1842, helped by more hot inflation data from Germany, UK and Canada and strong US housing data. China cut mortgage rates and lifted Asian markets (Nikkei +1.11%).

Lagarde: The ECB has reasons NOT to act as quickly as the FED. Biden reinforced rhetoric about Russia and Ukraine, in which he predicted Russia would “make a move.” Johnson is staying in the UK for the time being.

  • U.S. DOLLAR (USDIndex 95.42) slips as yields fall .
  • US returns 10-yr moved higher to spike 1.90% & acts at 1.85%.
  • shares – US500 -44 (-0.97%) 4532USA500 FUTS stops 4544.
  • US oil – Pointed $87.97 and then collapsed 84.00 after Biden comments and ahead of today’s stocks.
  • gold – burdened $1843 and holds $1838 now after inflation news and Biden comments. A stop by 1830 is the key.
  • Bitcoin back to testing $42,400,
  • Forex MarketsEUR USD back to 1.1360, USDJPY now 114.40 & cable back to 1.3625.


Over night – AUD JOBS Better than expected unemployment 4.2% vs 4.6%, GERMAN PPI jumped to 5.0% from 0.8%.

European Open – March 10-year Bund future is up 5 ticks to 169.33, slightly outperforming US futures. However, the yield is up from the lows seen in the Asian portion of the session and the uptrend, particularly at the short end, is likely to continue.

The long end, meanwhile, should actually benefit from tightening moves as inflation continues to rise. DAX and FTSE 100 Futures Section up 0.4% and 0.6% respectively right now, and a 0.8% gain in the NASDAQ leads US futures higher.

today – Norges Bank & CBRT interest rate decisions, EZ CPI (final), ECB MinutesUS Claims, Philly Fed, Existing Home Sales. merits from American Airlines and Netflix.

Biggest FX mover @ (07:30 GMT) USDNZD (+0.51%) collected 1.0600 to break yesterday 1.0700 earlier, although cooling now. MAs still aligned higher, MACD signal line and histogram higher. RSI 63 but cooling, H1 ATR 0.0014 Daily ATR 0.0053.