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)

Stocks:

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.

Expectations on easing inflation boosted stocks market and flattened gold while depressing dollar. Oil prices remained high despite a light drop. Cryptos strengthened.

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.

Commodities:

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.

Currencies:

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.

Cryptocurrencies:

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. 

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