Monday's Markets Update (January 22, 20240

23 Jan 2024 by rate3

On Monday, Wall Street's major indices, including the S&P 500, Dow Jones, and Nasdaq 100, hit record highs. Notable performances came from Apple and Nvidia. However, technical graphs show that stock indexes are starting to show weakness. Investors await key economic data on Q4 GDP growth, PCE, and S&P Global PMIs. Meanwhile, BTC has broken through an important resistance level at 40K, suggesting that short-sellers are trying to crash it further following the BTC ETF approval.

Crypto

Major banks, including Morgan Stanley, face an uncertain future as the dollar's dominance in global reserves is questioned. Diversification by nations like the EU and China, coupled with the rise of cryptocurrencies and stablecoins, rises Morgan Stanley's and other big banks' feign concern over their future, portraying it as a "threat to the global financial system." In reality, the challenge lies in the shifting dynamics favoring decentralized currencies and stablecoins, unsettling traditional banking establishments (source).

World Markets

South Korea's Producer Price Inflation rose (Bank of Korea) to 0.10% in December 2023, up from -0.40% in November. The monthly average from 1965 to 2023 is 0.46%, with a peak of 14.50% in February 1974 and a low of -2.30% in November 2008.

Commodities

Silver prices fell to $22.5/ounce as the dollar strengthened, and investors scaled back expectations of prompt Fed easing. Robust US retail sales in December reduced chances of a March rate cut. Governor Waller's stance against rapid rate cuts influenced sentiment, prompting anticipation of additional Fed remarks for clarity. China's lower-than-expected Q4 GDP growth has negatively impacted the industrial outlook for metals.