Trading Central--MORNING MARKET UPDATE

Market Wrap: Stocks, Bonds, Commodities.

On Wednesday, U.S. stocks remained under pressure as Treasury yields rebounded further. The Dow Jones Industrial Average fell 94 points (-0.25%) to 37,266, the S&P 500 dropped 26 points (-0.56%) to 4,739, and the Nasdaq 100 was down 94 points (-0.56%) to 16,736.

The U.S. 10-year Treasury yield rose 4 basis points to 4.106%.

U.S. data showed that retail sales grew 0.6% on month in December (vs +0.3% expected), and industrial production increased 0.1% (vs -0.1% expected).

Real estate (-1.93%), automobiles & components (-1.91%), and utilities (-1.52%) stock sectors led the market lower.

Microsoft (MSFT) dipped 0.20%, Apple (AAPL) declined 0.52%, and Nvidia (NVDA) was down 0.58%.

Tesla (TSLA) fell 1.98%. The electric-vehicle maker lowered prices of its products in Germany after doing so in China.

Spirit Airlines (SAVE) plunged a further 22.47% after tumbling 47% Tuesday when a U.S. judge blocked JetBlue Airways from acquiring the company.

Prologis (PLD) dropped 2.39%. The industrial real estate investment trust's fourth-quarter revenue missed expectations.

Charles Schwab (SCHW) declined 1.34%, and US Bancorp (USB) was down 1.35%, as both financial firms posted lower-than-expected quarterly results.

European stocks stayed in the red, with the DAX 40 losing 0.84%, the CAC 40 down 1.07%, and the FTSE 100 down 1.48%.

In Asia, Japan's Nikkei 225 Index hit a 34-year intraday high of 36,239, while Hong Kong's Hang Seng Index tumbled 3.71% to 15,276, the lowest close since October 2022.

U.S. WTI crude-oil futures gained $0.42 (+0.58%) to $72.82 a barrel.

Gold price slid $21 (-1.07%) to $2,005 an ounce, below both its 20-day and 50-day moving averages. 

Market Wrap: Forex

The U.S. dollar held firm against other major currencies. The dollar index was little changed at 103.38.

EUR/USD added 6 pips to 1.0880.

USD/JPY climbed 98 pips to 148.16, the highest level since early December. This morning, Japan's data showed that machinery orders fell 4.9% on month in November (vs -0.5% expected).

GBP/USD gained 42 pips to 1.2678. U.K. inflation rate rebounded to 4.0% on year in December (vs a fall to 3.8% expected).

The Royal Institute of Chartered Surveyors (RICS) house price balance improved to -30% in December (vs -41% expected).

AUD/USD fell 32 pips to 0.6551. This morning, Australia's data showed that the number of employment unexpectedly dropped 65,100 in December (vs +20,000 expected) with the jobless rate staying at 3.9% (as expected).

USD/CHF climbed 29 pips to 0.8644, and USD/CAD added 18 pips to 1.3510.

Bitcoin traded lower to $42,680. 

EUR/USD Intraday: bullish bias above 1.2640.

Pivot:

1.2640

Our preference:

Long positions above 1.2640 with targets at 1.2695 & 1.2715 in extension.

Alternative scenario:

Below 1.2640 look for further downside with 1.2615 & 1.2595 as targets.

Comment:

Technically the RSI is above its neutrality area at 50.

USD/JPY Intraday:the bias remians bulish.

Pivot:

147.60

Our preference:

Long positions above 147.60 with targets at 148.50 & 148.80 in extension.

Alternative scenario:

Below 147.60 look for further downside with 147.30 & 147.05 as targets.

Comment:

Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GBP/USD Intraday: rebound expected.

Pivot:

1.0855

Our preference:

Long positions above 1.0855 with targets at 1.0900 & 1.0915 in extension.

Alternative scenario:

Below 1.0855 look for further downside with 1.0840 & 1.0825 as targets.

Comment:

The RSI calls for a bounce.

Crude Oil (WTI)‎ (G4)‎ Intraday: further advance.

Pivot:

72.00

Our preference:

Long positions above 72.00 with targets at 73.35 & 73.80 in extension.

Alternative scenario:

Below 72.00 look for further downside with 71.40 & 70.75 as targets.

Comment:

The next resistances are at 73.35 and then at 73.80.

Gold Intraday:key resistance at 2017.00.

Pivot:

2017.00

Our preference:

Short positions below 2017.00 with targets at 2001.00 & 1995.00 in extension.

Alternative scenario:

Above 2017.00 look for further upside with 2023.00 & 2029.00 as targets.

Comment:

As long as the resistance at 2017.00 is not surpassed, the risk of the break below 2001.00 remains high.

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