CURRENCIES:

• Gold Price Trends: Gold prices declined due to an increase in U.S. Treasury yields and a stronger U.S. dollar.
• Currency Market Movements: The EUR/USD and GBP/USD experienced slight drops but remained above critical technical levels.
• Anticipation of U.S. Inflation Data: The upcoming U.S. inflation report is expected to significantly influence market volatility in the following week.
• Stock Market Performance: Despite the pressure from rising bond yields, U.S. stocks, including the S&P 500 and Nasdaq 100, achieved record highs.
• U.S. Dollar Strength: The U.S. dollar has been on an upward trend for four weeks, affecting currency pairs like EUR/USD, GBP/USD, and leading to a notable rally in USD/JPY.
• Potential Market Reactions to CPI Report: The January inflation data release could lead to substantial market fluctuations, with traders advised to brace for potential sharp price movements.
• Impact of Inflation on Markets: An inflation rate exceeding expectations could boost U.S. yields and the dollar but negatively affect stocks and gold. Conversely, lower-than-expected inflation figures might decrease yields, weaken the dollar, and support equities and gold prices in the short term.

STOCK MARKET:

• Economic data: New York Fed one-year inflation expectations, January (3.01% previously)
• Earnings: Avis Budget Group (CAR), Monday.com (MNDY), Waste Management (WM), Zoominfo Technologies (ZI)
• Key Market Indicators: Inflation, retail sales, and corporate earnings are pivotal factors for the market this week.
• S&P 500 Milestone: The S&P 500 surpassed the 5,000 mark for the first time, continuing a positive trend seen in recent weeks.
• Corporate Earnings Reports: About 15% of S&P 500 companies, including John Deere, Coinbase, Airbnb, and Shopify, are scheduled to report their earnings.
• Inflation Expectations: The Consumer Price Index (CPI) for January is anticipated, with an expected annual gain of 2.9%, signaling a decrease from December’s 3.4%.
• Core Inflation Forecast: Excluding food and energy, core inflation is projected to have risen by 3.7% year-over-year, with a monthly increase of 0.3%.
• Consumer Spending Outlook: January’s retail sales report is awaited, with an expected 0.2% decline from the previous month, influenced by seasonal factors and weather disruptions.
• Automotive Industry Earnings: Stellantis is set to report its earnings, with attention on its performance and electric vehicle (EV) strategy following positive surprises from Ford and GM.
• Earnings Performance: So far, 75% of S&P 500 companies have reported earnings, showing a trend towards the second consecutive quarter of earnings growth.
• Analyst Insights: High earnings beat rates among U.S. companies suggest strong market performance, with expectations of continued earnings growth over the next two years.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

CURRENCIES:

US Dollar and Upcoming CPI Report:

• DXY index rose, influenced by higher U.S. Treasury yields.
• Market awaits January inflation data; headline CPI expected to slow to 3.1%, core CPI to 3.8%.
• Higher than expected inflation could boost U.S. dollar by altering Fed rate cut expectations.
• Lower inflation may lead to dovish rate expectations and a weaker dollar.

Technical Analysis for Currency Pairs and Gold:

• Focus on EUR/USD, GBP/USD, and gold (XAU/USD) technical outlook.
• Key support and resistance levels highlighted ahead of U.S. CPI release.

STOCK MARKET:

Stock Market Highlights

S&P 500 Valuation Insights:

• The S&P 500’s forward price-to-earnings ratio increased to 20.4, surpassing its historic average.
• Despite high valuations, equities can remain costly before normalizing.
• The index rose 21% since late October, nearing a significant 5,000 level but closed just below it.
• Rising stock valuations contrast with increasing Treasury yields, hinting at competitive investment options.
• Earnings forecasts for S&P 500 companies remain stable, with a 9.7% growth expectation for the year.
• High valuations often lead to modest future performance, but current levels are below the extreme peaks of past market bubbles.
• The index’s valuation is heavily influenced by the “Magnificent Seven” megacap stocks, trading at higher earnings multiples.
• Lesser signs of speculative excess compared to past market peaks suggest a different market environment.

Start your CFD Shares Trading journey with VT Markets now!

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

CURRENCIES:

Gold Price Trends and Influences

• Gold prices have been fluctuating, stuck in a consolidation phase as they await new catalysts.
• Upcoming U.S. inflation data could significantly influence gold’s price direction in the near term.

Impact of Federal Reserve’s Monetary Policy

• The Federal Reserve’s stance on interest rates is a crucial factor for gold’s future movements. Current signals suggest no immediate rate cuts, which may dampen gold’s appeal.

Inflation Data and Gold’s Reaction

• Expected U.S. inflation rates and their potential impact on gold are discussed, with specific projections for January’s CPI.
• An unexpected high inflation report could negatively affect gold prices by adjusting interest rate expectations.

Outlook Based on Inflation Outcomes

• Lower-than-expected inflation could boost gold prices, possibly affecting market expectations for future rate cuts.

STOCK MARKET:

Stock Market Highlights

• The S&P 500 reached a new record high, closing at 4,995, with the 5,000 mark in sight.
• U.S. stocks rose, influenced by quarterly earnings reports and ongoing discussions about interest rate cuts.
• Despite mixed earnings, notable movements included Alibaba’s shares dropping after a revenue miss and Snap’s significant decline following a disappointing profit forecast.
• Disney announced a 50% increase in its cash dividend after reporting strong earnings, leading to a post-market share price surge.
• Federal Reserve officials suggest no immediate rate cuts, with a focus on inflation trends before any policy adjustments.
• Concerns around regional banks and the real estate sector were sparked by troubles at New York Community Bancorp, despite a slight recovery in its share price.

Start your CFD Shares Trading journey with VT Markets now!

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

CURRENCIES:

US Dollar Performance and Outlook

• The US dollar saw a significant boost following strong economic data and is poised for further movement based on upcoming Federal Reserve speakers’ comments.
• Despite a slight softening, the dollar had previously surged over two days, fueled by a better-than-expected non-farm payroll report, indicating a robust and strengthening labor market.
• The services sector, as shown by the ISM services PMI, has expanded for 13 consecutive months, surpassing expectations and previous readings, hinting at a resilient economy despite tight monetary policies.
• Improvements in new orders, prices, and imports within the ISM report suggest strong consumer spending and the impact of increased shipping costs on prices.
• The Senior Loan Officer Survey highlighted a growing willingness among credit providers to extend credit and a slight increase in demand for it, contrasting with expectations in a high-interest rate environment.

Economic Indicators and Fed’s Influence

Federal Reserve Speakers and USD Outlook:

• The dollar’s trajectory may continue to be influenced by forthcoming comments from Fed speakers on monetary policy and interest rates.
• Observations on economic data and cautious approaches to interest rate cuts are anticipated to contribute to the dollar’s recent advances.
• This economic resilience and strong data suggest potential delays in starting interest rate cuts, leading to recent gains in US yields and the dollar.
• The dollar index (DXY) showcased significant gains, with a focus on whether this momentum can be sustained, especially as it approaches key resistance levels noted in previous months.
• Federal Reserve’s Neel Kashkari’s comments on the unexpected strength of the US economy indicate that the current interest rates may not be as impactful due to a higher post-Covid neutral rate.

STOCK MARKET:

Snap Inc.’s Financial Performance and Market Reaction

• Snap Inc., the parent company of Snapchat, did not meet Wall Street’s revenue forecasts for the quarter, causing a 30% drop in its stock price.
• Despite its innovative features, Snap struggles to secure digital advertising revenue against larger competitors like Facebook’s Meta Platforms and Alphabet.

Comparison with Industry Giants

Internal Challenges Over Macro-Economic Issues

• Analysts suggest Snap’s revenue shortfall is due to internal issues rather than broader economic challenges, indicating a failure to leverage a resilient advertising market.

Strategic Focus and Management’s Response

• CEO Evan Spiegel emphasized the potential for growth, planning to target advertisers aiming for direct sales or website traffic, moving away from mere brand awareness campaigns.
• Snap reported Q4 revenue of $1.36 billion, below the expected $1.38 billion, with its annual revenue for 2023 remaining steady at $4.6 billion.

Operational Adjustments and Future Outlook

• Snap announced a 10% workforce reduction, equivalent to 528 employees, as part of its strategy to invest in long-term growth.
• The company aims to expand Snapchat’s user base, especially in its most profitable markets like North America and Europe, despite stagnation and modest growth in these regions, respectively.
• With 414 million daily active users in Q4, surpassing the anticipated 411.6 million, Snap foresees growth to 420 million users in the next quarter, projecting revenue between $1.1 billion and $1.14 billion against analysts’ expectations of $1.1 billion.
• Following these announcements and the earnings call, Snap’s shares significantly declined in after-market trading.
• In contrast to Snap’s performance, Meta’s advertising sales increased by 25% in the last quarter, while Google saw an 11% growth in its ad business, including a 16% rise in YouTube ad sales.

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