Midweek trading on Wednesday, 22 January 2025, will focus on critical economic updates and earnings results, with global markets reacting to developments in growth, inflation, and corporate performance.
Wednesday’s session is likely to be data-driven, with a mix of economic releases and earnings results setting the tone.
KEY INDICATORS
Global economic data
UK inflation report: December’s Consumer Price Index (CPI) data will shed light on price pressures in the UK, influencing Bank of England policy expectations and movements in the pound.
Eurozone flash PMI: Preliminary Purchasing Managers’ Index (PMI) data for January will provide insights into the region’s economic activity, particularly in the manufacturing and services sectors.
Monetary policy signals
Investors will closely monitor remarks from global central bankers, including Federal Reserve officials, for indications on the direction of monetary policy, as inflation and economic growth remain key concerns.
Corporate earnings season
Tech and industrials in focus: Key earnings reports from tech giants and industrial leaders will continue to shape sector-specific outlooks.
Markets will assess corporate guidance and performance trends in the face of macroeconomic headwinds.
MARKET MOVERS
XAU/USD
Possible long preference Long positions above 2762.84 with targets at 2771.77 & 2783.09 in extension. Alternative scenario Below 2746.73 look for further downside with 2739.88 & 2725.84 as targets. The next resistances are at 2771.77.00 and then at 2783.09.
Gold prices hit 11-week high on safe-haven demand amid Trump tariff threats
Gold prices edged higher to an 11-week high in Asian trading on Wednesday, extending gains for a third consecutive session as safe-haven demand grew amid US tariff fears under President Donald Trump’s administration.
Spot gold rose 0.2% to USD 2,749.29 per ounce, its highest level since early November.
Gold futures expiring in February gained 0.2% to USD 2,766.57 an ounce by 6:45 AM GMT.
The yellow metal was set for a third straight day of gains, as traders remained cautious while trying to gauge Trump’s policies, which are expected to drive inflation higher.
The dollar fell sharply on Monday after Trump avoided providing details on the imposition of US trade tariffs, further supporting gold prices.
Crude Oil WTI
Possible long preference Long positions above 76.33 with targets at 76.73 & 77.43 in extension. Alternative scenario Below 75.31 look for further downside with 74.50 & 73.99 as targets. The RSI is around its neutrality area at 50%.
TODAY’S NEWS HEADLINES
Forex markets looking more to White House than Fed – BOA
The next Federal Reserve policy-setting meeting is approaching, but markets are expecting little from the gathering, according to Bank of America (NYSE:BAC) Securities, with more focus on messaging from the White House than the central bank.
The Federal Reserve meets next week, concluding its latest meeting on 29 January, and is widely expected to remain on hold after its relatively hawkish message in December.
Fixed income markets currently project a 99.5% probability that interest rates will be held steady at their current level of 4.25% to 4.5%, according to the CME FedWatch Tool.
Oil prices steady; markets weigh Trump trade, production outlook
Oil prices steadied on Wednesday after recording some losses earlier this week following US President Donald Trump’s declaration of a national emergency to ramp up energy production.
At 1:35 PM GMT, Brent oil futures slipped 0.1% to USD 79.22 per barrel.
West Texas Intermediate crude futures fell 0.1% to USD 75.75 per barrel.
Trump declared a national emergency on Monday to significantly increase US energy production—one of his first moves after taking office.
Netflix, Oracle lead market cap stock movers on Wednesday
Wednesday’s market saw notable fluctuations across various stocks, influenced by a mix of company news and market dynamics. Mega-cap stocks like Netflix, Inc. led the movement.
Netflix, Inc. (NFLX): Guggenheim upgraded Netflix’s stock target, maintaining a buy rating on Q4 results: +11.62%.
Oracle Corp (ORCL): OpenAI, SoftBank (OTC:SFTBY), and Oracle are planning a joint venture called Stargate – CBS: +6.88%.
Nvidia Corp (NASDAQ:NVDA): +3.91%.
Microsoft Corp (NASDAQ:MSFT): Microsoft launched a USD 5 million AI for Good Open Call grant programme to drive positive change in Washington state: +2.64%.
