Market News Summary

South Korean technology giant Samsung has announced that it expects a 35% decline in operating profits during the fourth quarter of 2023, contradicting market expectations by a significant margin amid a rebound in semiconductor prices.

Investors are awaiting some important data this week, including consumer and producer price indices, to get a comprehensive picture of expected movements in U.S. interest rates.

Dollar Index (USDX)

The release of data on Friday showing that the United States added more jobs in December than economists expected in a Reuters poll raised some doubts in financial markets that the US central bank will start cutting interest rates in March.

Financial markets now see a 64% chance of a rate cut of at least 25 basis points in March, according to FedWatch, down from 88% a week ago.

Pivot Point: 102.05

Spot Gold (XAUUSD)

Gold prices fell to their lowest level in three weeks on Monday under the pressure of rising Treasury bond yields, as expectations for an imminent interest rate cut by the Federal Reserve faded. Investors are looking to U.S. inflation data this week for further clarity.

The spot price of gold dropped by 0.9% to $2028.03 per ounce after reaching its lowest level since December 18, earlier in the session. U.S. gold futures settled down 0.8% at $2033.5.

Pivot Point: 2030

Dow Jones Index (DJ30ft – US30)

The major U.S. indices closed with collective gains in Monday’s session, supported by the rise in the stocks of major technology companies due to the decline in Treasury bond yields. Investors are eagerly awaiting consumer price index (CPI) and producer price index (PPI) data this week to shape expectations for the Federal Reserve’s interest rate trajectory.

The Dow Jones Industrial Average rose by 0.58%, equivalent to 217 points, in Monday’s session, marking its third consecutive daily gain to close at 37,683 points. The S&P 500 also increased by 1.4%, recording its first gain of over 1% since the beginning of the current year. Additionally, the Nasdaq Composite Index rose by 2.2%, achieving its highest daily gains in 7 weeks.

Pivot Point: 37765

US Crude Oil (USOUSD)

On Monday, U.S. crude oil prices experienced a 4% decline following Saudi Arabia’s decision to lower its prices. This move has reignited worries about an excess supply in the market, coinciding with a period of weakened demand. However, oil prices stabilized in early trading today, Tuesday, after their decline in the previous session. Market sentiments are influenced by the ongoing tensions in the Middle East on the one hand and concerns about demand and increased OPEC supply on the other.

Brent crude futures rose by 18 cents, or 0.2%, to $76.30 per barrel, while West Texas Intermediate (WTI) crude futures increased by six cents, or 0.1%, to $70.83 per barrel.

Pivot Point: 71.65

Risk Warning

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