Expectations on easing inflation boosted stocks market and flattened gold while depressing dollar. Oil prices remained high despite a light drop. Cryptos strengthened.Updated time: 16 Jan, 2023, 06:16 (UTC+04:00)
Wall Street finished another session in green on continuous optimism over bets of a slowdown in inflation report that could signal a less hawkish Fed. Many are seeing the market is closer to a pause than at any other point last year, with a 75% chance expecting 25 bps rate hike while giving less expectations on Q4 earnings. S&P 500 and Nasdaq led with more than 1% gains, underpinned by big tech, consumer discretionary and real estate. Dow Jones racked up 0.8% gains. Asian shares followed the same upward trend.
U.S stock futures traded steady with each ticked 0.1% lower. The main focus is still CPI print, with jobless claims and FOMC member Harker’s speech will be clues for next market direction.
Oil prices fell slightly but still remained at the 2-week high on expectations towards a drop in U.S CPI which could bring a smaller interest rate. Brent crude futures lost 0.1% to $82.82 while WTI crude futures added 0.2% to $77.55. Although the market was seen to mark a weak start in 2023, crude prices are kind of supported by the less hawkish Fed, recovering global demand and tight supplies.
Gold prices steadied at 8-month highs, on the contrary with previous prediction that the yellow metal will move in a more positive direction. Spot gold and gold futures traded at $1,876.41 and $1,879.50 an ounce while bullion prices benefited due to recession fears. Copper futures slightly fell 0.1% to $4.1730, but that was a nearly 10% year-to-date gain amid optimism over China's opening.
The dollar paused its retreat and traded near a 7-month low, pushing its index to 103.14. The spotlight was given to the Japanese yen rising 0.7% to $131.58 following reports that the BOJ would consider the side effects of its monetary easing. Sterling was steady at $1.21505 while euro was slightly up to $1.0764. The antipodean currencies started the year on a strong footing, strengthening more than 0.1% with sterling now at $0.69135 and kiwi at $0.6375. China's offshore yuan climbed to $6.7545.
Cryptos witnessed an impressive trading, particularly Bitcoin breaking the $18,000 threshold for the first time since mid-December. Meanwhile, Etherum was changing hands around $1,402.08, up 5.3% over the past 24 hours.