Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
S&P500 closed slightly lower -0.1%
Information is not investment advice
Ichimoku Kinko Hyo
EUR/JPY: The EUR/JPY pair is now trading slightly above the Kumo. An upward wave would lead the currency pair above the Tenkan sen level will fuel the pair into fresh highs. A failed attempt to move higher will push prices to enter the cloud with bearish implications.
European Market View
Today's key event is tonight's policy announcement from the Fed. The policy announcement is at 20:00 CET and the press conference starts at 20:30 CET.
Still a lot of focus on Evergrande and Chinese financial markets. This morning the company issued a press release stating in vague terms that it intends to pay interest on its bonds in Chinese currencies following "negotiations off the clearing house". What the statement did not provide however was, how much interest would be paid and/or when. The People's Bank of China increased its injection of short-term cash into the financial system, helping to soothe sentiment, which may help prevent broader contagion in the Chinese credit market. The Chinese equity markets fell slightly but not as much as feared after they re-opened after two days of holiday closing.
In the equity space it was a choppy session for equities around the world on Tuesday. Europe went for the rebound, but the US session was unable to find any real momentum. Instead, S&P500 closed slightly lower -0.1%, Dow Jones -0.2% and NASDAQ 0.2% higher. Sector performance was more aligned between regions, as investors picked up defensives and quality (tech and health care) that was sold in Monday's risk-off session. Worst hit industrials and materials however continued lower. VIX ticked down slightly but still in the 25 range. Asian markets very mixed as Chinese markets reopen after a long holiday. Slightly optimistic undertone though as Shenzhen and Shanghai are only moderately lower and Hong Kong is continuing its rebound. US futures point to a positive opening.
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Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
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European Currencies Ahead of the Banks' Statements
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
Will the FOMC Surprise the Markets?
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
What awaits the Oil Market in February?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
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