Tuesday, February 7, 2023

Daily Roundup: Mixed earnings impact sentiment

  • European indices closed today’s session slightly lower, extending losses from the previous session, as the DX ended below the 15,085 level dragged by tech stocks, growth concerns and hopes that the ECB would take an aggressive stance against inflation.
  • The US and Germany said on Wednesday they would send dozens of tanks to Ukraine. Russia’s ambassador to Germany, Sergei Nechayev, called Berlin’s move an “extremely dangerous decision”.

  • All three major Wall Street indices fell sharply at the start of the session, though buyers managed to pare some losses overnight. The Dow Jones is currently trading 0.50% lower, while the S&P 500 and Nasdaq are down 0.7% and 1.0%, respectively, as a disappointing earnings report from Boeing and weak prospects for Microsoft added to concerns about a possible recession.

  • The technology leader reported its slowest sales growth in more than six years and issued a weak outlook for Azure’s cloud computing unit, leading Amazon. Cloud computing rivals including .com (AMZN.US) and Alphabet (GOOGL.US) came under pressure. Going forward, the market’s focus will shift to Tesla and IBM, who will announce their earnings after the close.

  • The precious metals erased early losses and traded in the green amid a weak dollar. Gold is hovering around the recent high of $1,940, while silver is up about 1.0% and is approaching the $23.80 mark.

  • The Australian dollar outperformed other currencies on Tuesday and gained more than 0.7% against the USD. The AUDUSD pair is trading just below the 0.7100 level, which is close to the August 2022 high. The Yen and the Pound also had a strong session as both the currencies strengthened by about 0.45% against the Dollar. The euro and franc also appreciated against the dollar, although the scale of the movement is smaller.

  • The Bank of Canada decided to raise interest rates by 25 basis points as widely expected. However, the BoC announced the end of the policy tightening process, further weakening the Canadian dollar. BoC Governor McCallum said that this is a conditional pause, which is in line with the overall development of the economy and forecasts.

  • OIL.WTI is stuck below the important resistance area around $81.00 a barrel. Today’s mixed EIA report caused a temporary rally in prices, however that move was quickly erased and by the end of the day, Brent crude was down 0.6% and WTI was down 0.3%.

  • Major cryptocurrencies declined along with technology stocks. Bitcoin briefly fell below the local support area near $22,300, while Ethereum tested the $1,515 mark, though buyers managed to erase most of the losses later in the session.

couple EURGBP There was a break below the main support area near 0.8810-0.8815, which could nullify the local uptrend according to the overbalanced methodology. Source: xStation5

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Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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