Monday January 30, 2023: $143.00 -($2.93) -(2.01%)
Jan 30, 2023 1:57:56 GMT -8
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Post by Dave on Jan 30, 2023 1:57:56 GMT -8
Good morning and welcome to a new week. We are starting this week with a red pre-market at - 1.18% at this moment. Not what I was hoping for. But let’s see how this plays out.
Stocks Fall With Eyes on Rate Hikes; Bonds Decline: Markets Wrap
Monday, January 30
NXP Semiconductors (NXPI), GE Healthcare Technologies (GEHC), Alexandria Real Estate Equities Inc. (ARE), Canon Inc. (CAJ), Principal Financial Group (PFG), Ryanair Holdings (RYAAY), and Franklin Resources Inc. (BEN), and Whirlpool Corporation (WHR) report earnings
Dallas Fed Manufacturing Index (Jan)
NXP Semiconductors (NXPI), GE Healthcare Technologies (GEHC), Alexandria Real Estate Equities Inc. (ARE), Canon Inc. (CAJ), Principal Financial Group (PFG), Ryanair Holdings (RYAAY), and Franklin Resources Inc. (BEN), and Whirlpool Corporation (WHR) report earnings
Dallas Fed Manufacturing Index (Jan)
Stocks Fall With Eyes on Rate Hikes; Bonds Decline: Markets Wrap
Federal Reserve officials are expected to raise rates by a quarter percentage point on Wednesday, dialing back the size of the increase for a second straight meeting, after recent data suggested the central bank’s aggressive campaign to slow inflation is working. Signs of earnings pressure, however, are raising concerns about the health of the economy and the outlook for equities.
“Better price action in stocks has started to convince many investors they are missing something — compelling them to participate more actively,” a team led by Michael Wilson wrote in a note. “We think the recent price action is more a reflection of the seasonal January effect and short covering after a tough end to December and a brutal year.”
“Better price action in stocks has started to convince many investors they are missing something — compelling them to participate more actively,” a team led by Michael Wilson wrote in a note. “We think the recent price action is more a reflection of the seasonal January effect and short covering after a tough end to December and a brutal year.”
Central Banks
By midweek central banks are likely to dominate the agenda, beginning on Wednesday with the Fed, which is expected to downshift to a 25 basis points increase in interest rates amid signs of cooling inflation.
A report Friday showed the Fed’s preferred inflation measures eased in December to the slowest annual pace in over a year and spending fell. Separate data from the University of Michigan showed US inflation expectations continued to retreat in late January, helping boost consumer sentiment.
The ECB and the Bank of England are each projected to hike by half a percentage point when they deliver decisions a day after the Fed.
Elsewhere in markets, a gauge of dollar strength was little changed on Monday and Group-of-10 currencies mostly traded in relatively narrow ranges. Treasury yields rose.
Meanwhile, hedge funds are betting this year’s stellar start for Treasuries is too good to last, quietly building up the biggest bearish bet on bond futures on record.
An aggregate measure of net-short non-commercial positions across all Treasuries maturities has hit 2.4 million contracts, according to the latest data from the Commodity Futures Trading Commission as of Jan. 24.
Oil fell as traders parsed signals on demand from China while tracking an uptick in tensions in the Middle East after Israel was reported to have carried out a drone strike against a target in Iran.
By midweek central banks are likely to dominate the agenda, beginning on Wednesday with the Fed, which is expected to downshift to a 25 basis points increase in interest rates amid signs of cooling inflation.
A report Friday showed the Fed’s preferred inflation measures eased in December to the slowest annual pace in over a year and spending fell. Separate data from the University of Michigan showed US inflation expectations continued to retreat in late January, helping boost consumer sentiment.
The ECB and the Bank of England are each projected to hike by half a percentage point when they deliver decisions a day after the Fed.
Elsewhere in markets, a gauge of dollar strength was little changed on Monday and Group-of-10 currencies mostly traded in relatively narrow ranges. Treasury yields rose.
Meanwhile, hedge funds are betting this year’s stellar start for Treasuries is too good to last, quietly building up the biggest bearish bet on bond futures on record.
An aggregate measure of net-short non-commercial positions across all Treasuries maturities has hit 2.4 million contracts, according to the latest data from the Commodity Futures Trading Commission as of Jan. 24.
Oil fell as traders parsed signals on demand from China while tracking an uptick in tensions in the Middle East after Israel was reported to have carried out a drone strike against a target in Iran.