Market Commentary January 29

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

The market will be exciting this week in America with a substantial portion of companies (more than 100 of the S&P500 index) listed to report earnings, including Microsoft, Apple, Facebook, and Amazon amid many others.

Thus far the bulk of reported earnings has been positive, however, clouded by numerous factors, including the on-off trade talks with China and hints of how a slowing Chinese economic machine could reshape America's corporate profits. 

And while President Trump has agreed to a brief-temporary reopening of the Federal Government, uncertainty continues as everyone now watches  what will happen with the February 15 deadline following President's statement to the WSJ (Wall Street Journal) on Sunday that another Federal Government shutdown is “certainly an option.”  

Evolving off their fifth continuous weekly market gains, the Nasdaq and DJI indices both finished lower on Monday session, so as did the other main indices across the board. 

The S&P500 closed minus 21 points, or -0.78 percent; the DJI closed at minus 209 points, or -0.84 percent, and the Nasdaq 100 closed slightly over minus 90 points, or -1.13 percent, while the Russell 2000 index closed minus over 9 points, or -0.63 percent.

Other Market(s)

The Asia-Pacific market was slightly subdued on Monday session. On Sunday the Bank Of Japan meeting minutes were published, the minutes revealed that the policymakers were disagreeing over the relevant level of the bond yields determination.

In China, the H.K. Hang Seng Index managed to close up; it was at a similar position to the Nikkei index at the time of the Nikkei’s closing – hence a late rush rescued the trading day. Different somewhat significant news headline was the decision that Standard & Poor's Financial Services has been given the go-ahead to begin rating Chinese bonds.

That conceivably could commence opening up capital inflows into China's debt market with a “Reputable Western” rating company leading the charge. Therefore, more talks on China's trade war with America will be hugging the news headlines. Japan's Yen did rise against all main world currencies on Monday bar the Euro Dollar.

Overall the Eurozone markets were punished with the somewhat gloomy view from super Mario Draghi and all main stock markets were down close to 1 percent. The German DAX30 was down minus 0.57 percent, UK's FTSE100 dipped minus 0.84 percent, while French CAC40 closed lower minus 0.76 percent.

The British Pound declined against the Euro Dollar, CNY, Yen, and US Dollar a slight drop from its the most recent run of form. The Euro Dollar, coming off the celebration of its 20th birthday, shows the winning side of the Monday trading session, advancing versus most dominant currencies.

As expected, numbers wherein the lending to the private market sector showed to surpass the unsurprising yet dismal economic climate outlook.

It was an important day for the Eurozone central banks with both the European Central Bank and the Bank of England chiefs delivering announcements. Mario Draghi highlighted the America-China trade war as being a primary cause of the burden on the Eurozone economic climate.

Mr. Carney, on the other hand, hosted a new format Q&A session, addressing topics via their online portal. Numerous different issues were discussed from creating a new crypto-currency, of which he defined security is the most critical shortfall in this experiment. Financially, he explained that the demand for funds (cash) would be growing for the foreseeable future.

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