Author: FX
The US 10 year yield moved to a new year low at 3.417%. That took the yield just below the 50% of the move up from the August 2022 low at 3.426%, but remained above the December low yield of 3.404%.US 10 year yields ping ponging in a 50 bp rangeThe combination is forming a nice floor for the 10 year yield at the 3.40% area. Having said that, looking at the chart above, the high that we saw in December stalled near the November 14 high at 3.904%. So since November 14 high yield at 3.904%, the yield has…
You don’t need to look around markets for long to see signs that sentiment around Europe has improved and now Deutsche Bank is quantifying it. Economists there have boosted their 2023 eurozone GDP forecast to 0% from -1.0% at year end.They note that Germany performed surprisingly well in 2022, growing 1.9% despite the industrial and energy headwinds.”The major growth engine was private consumption surging by 4.6%, supported by the end of COVID restrictions, pent-up savings and fiscal policy measures to cushion the real income losses provided by surging inflation. The stable labor market was also a supporting factor,” DB economists…
The S&P index on the daily chart moved to and through the 200 day MA on Thursday. It moved above the same MA today too. The MA comes in at 3967.17. The high today reached 3980.98. The high yesterday reached 3997.76. S&P faiis above the 200 day MA againThe price closed just below the MA yesterday. It is currently trading below that MA today at 3972.80. Visions of December are dancing in my head. The day of the CPI last month, the price moved above the 200 day MA but closed below that MA level. Failed break. The next day…
Analysts at MUFG Bank have a bullish outlook for the EUR/CHF cross, considering it could benefit from a further scaling back of fears over recession in the Eurozone. Key quotes: “After trading within a narrow range between 0.9800 and 0.9950 throughout most of Q4, the pair has broken higher in recent days as it first climbed above the 200-day moving average at 0.9940 and then above parity for the first time since the middle of last year. We expect a further move higher back towards levels that were in place during Q2 of last year between 1.0200 and 1.0500.” “The…
According to analysts at MUFG Bank, the Japanese Yen is set to gain further ground on the back of monetary policy expectations from the Bank of Japan. They consider possible a slide under 120.00 for later in 2023. Key quotes: “USD/JPY has fallen further still today and is now 15.5% down from the peak on 21st October – each of the three months in Q4 brought reason to buy the yen – intervention by the BoJ in October and November and the YCC change in December. On top of that US inflation has fallen faster than expected. Will we get…
Data released on Friday showed a significant increase in Consumer Confidence in January according to the preliminary report from the University of Michigan. Analysts at Wells Fargo point out the 64.6 reading for consumer sentiment in January marks the top print in the past year. The see that the relief on the inflation front and wage growth are lifting spirits, but warn the still-sour buying conditions suggest the good vibes in this report may not translate into a spending surge. Key quotes: “Consumers may not feel awesome about their finances, but they are undoubtedly less worried than they were when…
GameStop stock has shed value on Friday alonside broad market. Tesla cutting its prices in the United States has hurt its share price. Bed Bath & Beyond stock has lost more than 5%. Bank earnings results in the premarket were robust, but JPMorgan still expects a recession. GameStop (GME) stock has given back 0.6% on Friday morning after advancing more than 8% on Thursday. The NASDAQ is trading 0.3% lower at the same time as all three major United States indices are in the red following bank earnings that offered a somewhat pessimistic outlook on the full year. GME stock opened lower…
imaginima/iStock via Getty Images Algonquin Power & Utilities (NYSE:AQN) -6.6% in Friday’s trading, extending yesterday’s 3.6% slide in its U.S. shares after slashing its dividend by 40% and issuing below-consensus earnings guidance for 2023. Desjardins analyst Brent Stadler downgraded shares to Sell from Hold with a $7 price target, cut from $10, saying he “struggle(s) to make a compelling case to own the name based on fundamentals.” “Guidance for 2023 was well below expectations, headwinds are anticipated through 2025 with very little earnings growth (unless it is successful with KP rate cases) and we believe the current valuation is fair,”…
What a start to the year for European stock markets.Closing changes on the day:Stoxx 600 +0.5%German Dax +0.2%France’s CAC +0.7%UK’s FTSE 100 +0.7%Spain’s Ibex +0.6%Italy’s FTSE MIB +0.2%On the week:Stoxx 600 +1.9%German Dax +3.4%France’s CAC +2.4%UK’s FTSE 100 +1.9%Spain’s Ibex +2.1%Italy’s FTSE MIB +2.4%The year-to-date gains are now above 8% in Europe, which is surely better annual performance than 99% of European hedge funds over the past decade. I see this move as a roundtrip from the worries about natural gas supply that started in Aug/Sept. Does it deserve another lift beyond that?ADVERTISEMENT – CONTINUE READING BELOW Source link
US Consumer Sentiment improved, while inflation expectations edged lower. UK’s GDP for the fourth quarter contracted and flashed a gloomy economic outlook. GBP/USD traders are eyeing UK CPI, Retail Sales, and US Retail Sales data. The Pound Sterling (GBP) slid slightly vs. the US Dollar (USD) Friday, following the release of the University of Michigan (UoM) Consumer Sentiment for January in the US, which exceeded estimates, while the poll showed that inflation expectations for one-year were downward revised. At the time of writing, the GBP/USD is trading at 1.2204 after hitting a daily low of 1.2150. GBP/USD range-bound awaiting next…