Spreadex Market Update
US Retail Sales Roar Back in January
Equities Shrug Off US Retail Sales to Rally
Equities markets were broadly higher yesterday despite the stronger US Dollar. The FTSE passed the 8000 level for the first time ever, driven by falling inflation in the UK and a weaker Pound while the ongoing decline in gas prices is helping lift sentiment towards European stocks. The Nikkei remains in consolidation mode for now, reflecting uncertainty over the upcoming change in BOJ governor. Chinese stocks were the big loser over the day falling sharply as a stronger US Dollar weighed on sentiment, though the move has been linked to profit taking on the back of the recent rally.
Shopify Stock Soars on Earnings Beat
In the US earnings season landscape, Shopify was the main event yesterday. The company’s stock rallied more than 6%, now up more than 12% off last week’s lows as the group posted better-than-forecast results for Q4. Both earnings and revenues came in above forecasts, marking a second consecutive quarter of earnings growth. Kraft Heinz shares also rallied over 2% on the day driven by better-than-forecast results. Today, Applied Materials will be the main focus, due to post its results at market close.
AUD Rallies Despite Weaker Jobs Data
A softer start for the US Dollar today has allowed key currency counterparts to rebound. AUD is leading the way today despite worse-than-forecast labour data overnight. The unemployment rate was seen ticking back up to 3.7% from 3.5% prior. Traders now await RBA governor Lowe who speaks later today as traders mull the prospect of fresh hiking action from the bank on the back of the recent lift in inflation.
Metals & Oil Stabilise
In the metals and commodities space, both gold and silver are trading a little firmer today, though both metals look vulnerable to further downside on the back of the recent declines we’ve seen. Crude prices have firmed up today also after manging to bounce off the lows yesterday. The EIA reporting a massive 16.5 million barrel build in crude stores last week. With US output forecast to rise to record highs over the next month, the ongoing lift in inventories level reflects weaker demand which is keeping prices pressured for now.
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