Spreadex Market Update
Inflation, Flying Objects & The China Recovery in Focus on Monday
Equities Softer Ahead of US CPI
Equities markets start the week with a softer tone as traders brace for US CPI tomorrow. Most markets weakened into the back end of last week as USD traded higher in response to hawkish Fed comments. Tomorrow’s US CPI results hold the potential to push equities lower again if any surprise upside is seen. While asset markets in the west have been weaker, Chinese stocks were seen pushing higher again at the open this week. Data over the weekend showed new Chinese bank loans hit record highs in January, reflecting an increase in spending as the post-pandemic recovery continues.
CHF Rallies on CPI Beat
CHF has been among the best performers at the start of the new week. The latest Swiss CPI data released today showed that prices rose last month, with CPI hitting 0.6% from -0.2% prior. The data suggests that the SNB might not yet be done with rate hikes and has seen a flood of demand for CHF on Monday.
JPY Weaker Despite Risk Aversion
PY has been the weakest performer so far today, despite the risk-off tone to early trading. With CHF rallying on hawkish SNB expectations, the Swiss currency appears to be attracting the majority of safe-haven inflow for now.
Metals & Oil Under Pressure on Monday
In the metals and commodities space, both gold and silver are seeing a quiet start to the week, though mildly under pressure. Tomorrow’s US CPI release will be the first big trading catalyst for the week with risks of a fresh drop if USD rallies on the back of any unexpected strength. Crude prices have started the week under offer with the market retracing Friday’s gains across the European open. If tomorrow’s CPI report shows any unexpected upside this might well see crude prices heading further lower across the week.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
