Banque Bemo L : Daily Markets Brief

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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