Daily Market Brief
January 19th 2023
FOREIGN EXCHANGE MARKETS | (Sources: Bloomberg / Forexlive) |
EURUSD
The EUR/USD pair is displaying a lackluster performance below the critical resistance of 1.0800 in the Asian session. The major currency pair has turned sideways as investors are awaiting the speech from European Central Bank (ECB) President Christine Lagarde for fresh impetus.
GBPUSD
The GBP/USD pair is displaying back-and-forth moves after a south-side drive below the critical resistance of 1.2350 in the early Tokyo session. The Cable witnessed sheer selling pressure on Wednesday after failing to sustain above 1.2435 as hawkish commentaries from Federal Reserve (Fed) policymakers trimmed the risk appetite of the market participants heavily.
USDJPY
USD/JPY holds lower grounds near 128.00 as it fades the previous day's run-up amid softer Treasury bond yields, as well as downbeat US Dollar, during early Thursday. In doing so, the Yen pair pays little heed to the fears emanating from downbeat foreign trade numbers from Japan and the US recession concerns.
INTERNATIONAL EQUITY MARKETS | (Sources: Bloomberg / Reuters) |
UNITED STATES OF AMERICA
The S&P 500 and the Dow lost almost 2% on Wednesday, their biggest daily drops in more than a month, after weak economic data fueled recession worries while hawkish comments from Federal Reserve officials soured investor moods further.
EUROPE
European shares marked their longest winning streak since November 2021 on Wednesday, lifted by upbeat earnings, while optimism over China's economic recovery lifted luxury stocks with Hermes hitting an all-time high at one point.
ASIA
China stocks were muted on Thursday, with trading volumes sliding ahead of the Lunar New Year holidays, while some funds booked profits after a recent rally driven by China's economic reopening cheer.
MUST READ | (Source: Bloomberg/ Forexlive) |
Canada is banning some foreigners from buying property after home prices surged
Canada in 2023 is closing its doors to foreign investors who want to purchase homes. A new Canadian law took effect January that essentially bans foreign buyers from buying residential properties as investments for 2 years. The law was passed because of a spike in Canadian home prices since the start of the pandemic - and some politicians' beliefs that foreign buyers were responsible by snapping up supply of homes as investments. "The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors, said the campaign website of Prime Minister this past year. "This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors." The law provides exceptions for home purchases by immigrants and permanent residents of Canada who are not citizens. But the steep rise in home prices in 2020 and 2021 was already reversed in 2022, well before the law took effect. Average home prices in Canada peaked just above $800,000 Canadian in February and have fallen steadily since then, dropping about 13% from that peak, according to the Canadian Real Estate Association. The Bank of Canada has been raising interest rates, resulting in higher mortgage rates in the country - just like in the U.S and other countries that have been hiking rates. CREA's price index is still up 38% from the end of 2019, before the pandemic, but the group said that inventory of homes for sales has returned to pre-pandemic levels.
Fx rates | Last | High | Low | % Daily | % Weekly | % YTD |
EUR-USD | 1.0802 | 1.0806 | 1.0782 | 0.07 | -0.47 | 0.91 |
GBP-USD | 1.2340 | 1.2351 | 1.2319 | -0.06 | 1.06 | 2.13 |
USD-JPY | 127.84 | 128.93 | 127.76 | -0.83 | 1.10 | 2.57 |
USD-CHF | 0.9160 | 0.9176 | 0.9152 | -0.03 | 1.27 | 0.93 |
Commodities | Last | High | Low | % Daily | % Weekly | % YTD |
Silver | 23.41 | 23.52 | 23.25 | -0.22 | -1.53 | -2.26 |
Crude Oil | 78.64 | 79.17 | 78.13 | -1.06 | 1.59 | -2.02 |
Bitcoin | 20843.95 | 20867.59 | 20636.23 | 0.31 | -0.29 | 26.03 |
Etherium | 1531.18 | 1533.20 | 1508.00 | 0.20 | -0.49 | 27.67 |
Period | 1 M | 3 M | 12 M | |||
EURIBOR | 1.98 | 2.34 | 3.34 | |||
* USD LIBOR rates will be discontinued after June 30, 2023 and will be replaced by SOFR | ||||||
Notes/Bonds | 2 Y | 10 Y | 30 Y | |||
US | 4.04 | 3.33 | 3.50 | |||
BTP - BUND | 0.28 | 1.74 | 2.00 | |||
GILTS | 3.50 | 3.31 | 3.67 | |||
Index | Close | % Daily | % M | YTD | Futures | % Change |
S&P | 3928.86 | -1.56 | 2.91 | 2.33 | 3937.50 | -0.22 |
Nasdaq | 10957.01 | -1.24 | 3.90 | 4.69 | 11455.50 | -0.18 |
DJ EuroStoxx50 | 4174.34 | 0.00 | 9.53 | 10.04 | 4157.00 | -0.57 |
FTSE 100 | 7830.70 | -0.26 | 6.38 | 5.09 | 7776.50 | -0.45 |
CAC 40 | 7083.39 | 0.09 | 9.42 | 9.42 | 7085.00 | N/A |
DAX | 15181.80 | -0.03 | 8.89 | 9.04 | 15169.00 | -0.51 |
IBEX 35 | 8933.30 | 0.48 | 9.79 | 8.56 | 8925.40 | N/A |
FTSE MIB | 26052.39 | 0.27 | 10.00 | 9.89 | 26036.00 | N/A |
Nikkei | 26405.23 | -1.44 | -3.06 | 1.19 | 26340.00 | -1.46 |
Hang Seng | 21678.00 | -0.08 | 11.92 | 9.50 | 21683.00 | -0.14 |
DFM General | 3349.40 | -0.29 | -0.01 | 0.11 | N/A | N/A |
MSCI Tadawoul | 10664.04 | -0.18 | 4.69 | 1.77 | N/A | N/A |
PRIOR_CLOSE_MID | CHG_PC CHG_PC CHG_PCT_ | |||||
Leb. Mrkts | Closing Px | High | Low | % Daily | % Weekly | YTD |
Solidere B | 61.95 | 62.25 | 61.50 | 0.57 | 3.25 | 2.65 |
MAIN WEEKLY EARNINGS | (Source: Nasdaq) | |||||
Company | Ticker | Market Cap | Date | Time | Estimate | Year Ago |
Procter & Gamble | PG US | $355.1 B | 19-Jan-23 | Pre-mkt | 1.58 | 1.66 |
Netflix, Inc. | NFLX US | $146.9 B | 19-Jan-23 | After-mkt | 0.45 | 1.33 |
Truist Financial Co | TFC US | $62.6 B | 19-Jan-23 | Pre-mkt | 1.28 | 1.38 |
PPG Industries | PPG US | $30.9 B | 19-Jan-23 | After-mkt | 1.15 | 1.26 |
SVB Financial Gro | SIVB US | $15.1 B | 19-Jan-23 | After-mkt | 5.26 | 6.56 |
ECONOMIC CALENDER | (Source: Forexlive) |
(19-01-23) CH- World Economic Forum - Davos
(19-01-23) EA- ECB Monetary Policy Meeting Accounts report
(19-01-23) US- Building Permits MoM DEC; Housing Starts MoM DEC
(19-01-23) US- Initial Jobless Claims 4-week average; Initial Jobless Claims JAN
(19-01-23) US- Philadelphia Fed Manufacturing Survey JAN; Fed's Brainard speech
(20-01-23) DE- Producer Price Index MoM DEC
(20-01-23) CA- Retails Sales MoM NOV; Retail Sales ex Autos MoM NOV
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Disclaimer: This report is published for information purposes only. The information herein has been compiled from, or based upon sources we believe to be reliable, but we do not guarantee or accept responsibility for its completeness and accuracy. This document should not be construed as a solicitation to take part in any investment, or as constituting any representation or warranty on our part. The investment risks described herein are not purported to be exhaustive, any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Investment, Capital Market and Treasury products are subject to Investment risk, including possible loss of principal amount invested. Past performance is not indicative of future results: prices can go up or down. Investors investing in investments and/or treasury products denominated in foreign (non-local) currency should be aware of the risk of exchange rate fluctuations that may cause loss of principal when foreign currency is converted to the investor's home currency. Client understands that it is his/her responsibility to seek legal and/or tax advice regarding the legal and tax consequences of his/her investment transactions. The consequences of any action taken on the basis of finformation contained herein are solely the responsibility of the recipient.
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Banque Bemo SAL published this content on 19 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2023 09:30:09 UTC.