Market Insights Digest - January 12, 2024

DAILY MARKET NEWSLETTER

January 12, 2024

MARKET WRAP

STOCKS, BONDS, COMMODITIES

On Thursday, U.S. stocks closed little changed amid hotter-than-expected inflation data. The Dow Jones Industrial Average added 15 points (+0.04%) to 37,711, the S&P 500 eased 3 points (-0.07%) to 4,780, while the Nasdaq 100 gained 27 points (+0.17%) to 16,820.

• Inflation Data: U.S. inflation rate rebounded to 3.4% on year in December (vs 3.1% expected and in November). Monthly inflation rate accelerated to 0.3% (vs 0.1% expected and in November), with shelter costs driving most of the growth.

• Jobless Claims: Latest initial jobless claims fell slightly to 202,000 (vs 209,000 expected).

• Yield: U.S. 10-year Treasury yield declined to 3.973%.

Winning Sectors: Retailing (+1.59%), software & services (+1.56%), and media (+1.32%).Losing Sectors: Telecom services (-2.74%), automobiles (-2.51%), and utilities (-2.34%).

Notable stock movements:

• Winners: Nvidia (NVDA) +0.87%, Netflix (NFLX) +2.91%, Meta Platforms (META) +3.65%.

• Losers: Tesla (TSLA) -2.87%, Boeing (BA) -2.27%, Microstrategy (MSTR) -5.21%, Coinbase Global (COIN) -6.70%, Marathon Digital (MARA) -12.60%.

European stocks closed lower, with the DAX 40 falling 0.86%, the CAC 40 down 0.52%, and the FTSE 100 down 0.98%.

U.S. WTI crude-oil futures rebounded $1.24 (+1.74%) to $72.61 a barrel, and gold price climbed $5 to $2,028 an ounce.

MARKET WRAP: FOREX

The U.S. dollar index was stable at 102.32.

• EUR/USD: Little changed at 1.0972.

• USD/JPY: Dropped 47 pips to 145.26.

• GBP/USD: Rose 25 pips to 1.2764.

• AUD/USD: Declined 8 pips to 0.6690.

As spot Bitcoin ETFs started trading, Bitcoin bounced to $49,100 before retreating to $46,400.

DIRECTIONAL VIEWS

GBP/USD Intraday: further upside.

• Pivot: 1.2740

• Preference: Long positions above 1.2740 with targets at 1.2810 & 1.2830.

• Alternative: Below 1.2740, look for further downside with 1.2720 & 1.2700 as targets.

USD/JPY Intraday: the downside prevails.

• Pivot: 145.70

• Preference: Short positions below 145.70 with targets at 144.30 & 143.95.

• Alternative: Above 145.70, look for further upside with 146.05 & 146.40 as targets.

EUR/USD Intraday: the upside prevails.

• Pivot: 1.0950

• Preference: Long positions above 1.0950 with targets at 1.1000 & 1.1020.

• Alternative: Below 1.0950, look for further downside with 1.0930 & 1.0915 as targets.

Dow Jones (CME) Intraday: intraday support around 37790.00.

• Pivot: 37790.00

• Preference: Long positions above 37790.00 with targets at 38030.00 & 38110.00.

• Alternative: Below 37790.00, look for further downside with 37630.00 & 37520.00 as targets.

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Note: Due to market volatility, some key levels may have already been reached, and scenarios played out.