📊 ROB’S DAILY UPDATE 📈
‼️ Historic year-opening rally awaits further impetus
Markets in Asia and Europe continue to rise, extending the year-opening, which is the strongest in decades. Overall, we see lower volatility after another very strong week for equities as investors returned to investing heavily in equities after more signs of falling inflation, robust economic activity, China's quick push to reopen its economy and pre-war energy prices.
Today, we see a quiet economic calendar and the earnings season is also taking a break. After a near normal Asian trading session, we see much lower trading volume than usual today due to the closure of the US markets for MLK Day.
The fear of missing out has been a key driver for equities over the past two weeks. We may see some selling depending on earnings and forecasts from US companies this week. Markets are slightly ahead of themselves with investors pushing strongly back into risk markets. However, it is also the calm before the storm, as important earnings reports are already due tomorrow - such as Goldman Sachs and Morgan Stanley.
The Fed and ECB officials, respectively, and the monetary policy outlooks of the major central banks will also be in focus, as will comments from the IMF at the start of the World Economic Forum in Davos, Switzerland.
Markets in Japan and the JPY are driven by speculation of a change in monetary policy. The yen remains on the upswing and has risen to levels last seen in May. Japan's benchmark 10-year bond yield rose above the BOJ's ceiling for a second day, showing that the BoJ remains under pressure to make adjustments.
Further gains in cryptocurrencies over the weekend show that positive risk sentiment continues for now. I also expect commodity prices, including oil and industrial metals, to continue to rise after recent strong gains, despite China's pledge to tighten price controls. Gold prices have fallen and the USD has recovered slightly but precious metal prices remain on an upward trend.
I expect natural gas prices to rise again as temperatures in Europe and the US fall and demand from China increases. A serious gas shortage in Iran is also providing a tailwind for natural gas prices.
👁 ROB'S MARKET OVERVIEW:
January 16 - 2023
⚠️ US markets closed for Martin Luther King Day
🇺🇸 US/Global Markets ➡️
Cyclical Stocks ➡️
Tech/Growth Stocks ➡️
Financial Stocks ➡️
Defensive Stocks ➡️
Energy Stocks ➡️
💱 Forex Markets
JPY ➡️/↗️ (rebound after slight losses during Asian trading)
EUR ➡️/↗️
USD, CHF, AUD, CAD ➡️
GBP ➡️/↘️
⚒ Commodity Markets ➡️/↗️
Oil prices ➡️/↗️ (rebounding after slight losses)
Natural Gas prices ↗️
Metal prices ➡️/↗️ (rebounding after earlier losses)
Precious Metal prices ➡️/↗️
⚡️Crypto Market ➡️/↗️
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
Yours, Robert 📈📈🇺🇸😴📈
‼️ Historic year-opening rally awaits further impetus
Markets in Asia and Europe continue to rise, extending the year-opening, which is the strongest in decades. Overall, we see lower volatility after another very strong week for equities as investors returned to investing heavily in equities after more signs of falling inflation, robust economic activity, China's quick push to reopen its economy and pre-war energy prices.
Today, we see a quiet economic calendar and the earnings season is also taking a break. After a near normal Asian trading session, we see much lower trading volume than usual today due to the closure of the US markets for MLK Day.
The fear of missing out has been a key driver for equities over the past two weeks. We may see some selling depending on earnings and forecasts from US companies this week. Markets are slightly ahead of themselves with investors pushing strongly back into risk markets. However, it is also the calm before the storm, as important earnings reports are already due tomorrow - such as Goldman Sachs and Morgan Stanley.
The Fed and ECB officials, respectively, and the monetary policy outlooks of the major central banks will also be in focus, as will comments from the IMF at the start of the World Economic Forum in Davos, Switzerland.
Markets in Japan and the JPY are driven by speculation of a change in monetary policy. The yen remains on the upswing and has risen to levels last seen in May. Japan's benchmark 10-year bond yield rose above the BOJ's ceiling for a second day, showing that the BoJ remains under pressure to make adjustments.
Further gains in cryptocurrencies over the weekend show that positive risk sentiment continues for now. I also expect commodity prices, including oil and industrial metals, to continue to rise after recent strong gains, despite China's pledge to tighten price controls. Gold prices have fallen and the USD has recovered slightly but precious metal prices remain on an upward trend.
I expect natural gas prices to rise again as temperatures in Europe and the US fall and demand from China increases. A serious gas shortage in Iran is also providing a tailwind for natural gas prices.
👁 ROB'S MARKET OVERVIEW:
January 16 - 2023
⚠️ US markets closed for Martin Luther King Day
🇺🇸 US/Global Markets ➡️
Cyclical Stocks ➡️
Tech/Growth Stocks ➡️
Financial Stocks ➡️
Defensive Stocks ➡️
Energy Stocks ➡️
💱 Forex Markets
JPY ➡️/↗️ (rebound after slight losses during Asian trading)
EUR ➡️/↗️
USD, CHF, AUD, CAD ➡️
GBP ➡️/↘️
⚒ Commodity Markets ➡️/↗️
Oil prices ➡️/↗️ (rebounding after slight losses)
Natural Gas prices ↗️
Metal prices ➡️/↗️ (rebounding after earlier losses)
Precious Metal prices ➡️/↗️
⚡️Crypto Market ➡️/↗️
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
Yours, Robert 📈📈🇺🇸😴📈
