News & Analysis

GO Daily News – 31 January 2018

January 31, 2018

GO Daily News – 31 January 2018

Overnight

Major US equities stumbled over high bond yields. The underperformance of the health care stocks also weighed heavily on the indices.
The Dow shed a whopping 387.49 points and closed at $26,059.07. S&P 500 fell by 30.57 points and closed at $2,822.02, while Nasdaq lost 58.26 points and closed at $ 6,929.90.
 
WS30, S&P500 and STOXX50 (Hourly Chart)

Source: GO Markets MT4

Nikkei also dropped to 1-month low led by the weakness in Apple supplies. Also, due to lower oil prices, mining shares underperformed and weighed on the index which shed 354.14 points and close at 23,194.85.
 
JP225


Source: GO Markets MT4
Commodities also closed in the red yesterday. Crude Oil prices are down to $63.734 as of writing and lost $1.011 yesterday which weighed on the energy stocks. Concerns around the US oil inventories also add pressure on oil prices.
Yesterday’s risk off sentiment initially lifted the Gold but gold prices failed to hold onto gains during the New York session on the back of a stronger dollar. It ended the day at $1,338.50 shedding $1.80.
XAUUSD and USOUSD
Source: GO Markets MT4
Source: Bloomberg, TradingFloor.com, WSJ.com, CNBC
 
FOREX and CRYPTO News

Generally, FX was moderately on risk off mode. Markets were more focus on the sharp increase in bond yields.
Sterling emerged as one of the currencies that experienced big movements. The Pound recovered on the back of BOE governor Carney’s speech and his positive outlook on the economy.
In the Eurozone, Germany missed CPI and GDP estimates. However, markets reacted more to the CPI figures as the GDP estimates still show a strong economy.
The cryptocurrencies are still under regulatory pressure from certain countries. Fresh news that Facebook has banned advertisements for Bitcoins and other cryptocurrencies can be another hurdle for the world of cryptocurrencies. As of writing, BTCUSD and ETHUSD are currently trading in the range of $9,900 and $1,045 respectively.
BTCUSD and ETHUSD (Hourly)

Source: GO Markets MT4
Source: Bloomberg, TradingFloor.com, WSJ.com, CNBC and New York Times
 
Today’s Data
Busy Day ahead packed with key data releases. In the Asian session, markets will be focused on Australian inflation and Private Credit. China PMI’s are also due during the day. The markets are expecting robust momentum to be maintained for both manufacturing and services sector.
In the US session, the Fed Interest Rate Decision and Monetary Policy Statement will be eyed. Investors are looking for comments on the pace of the US economic growth and inflation. Gold prices could be further under pressure if investors anticipate that the central bank is close to a rate hike.

See more information about the coming week with our Economic Calendar.


Thursday, 31 January 2017
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
02.3410.5580.04601.1414.614
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
00007.59801.176

 

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