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Thursday Afternoon Report - Markets Update - 16 January 2025 - Global Stock Markets Rally as Lower CPI and Strong Bank Earnings Boost Confidence

Writer's picture: The Trade  Academy TeamThe Trade Academy Team

Updated: Jan 17


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AI Generated Art

Markets Update: U.S. equity index futures show mixed results; the S&P 500 rises approximately 0.15%. Initial jobless claims are at 217k compared to the 210k estimate. December retail sales month-over-month are below estimates, while excluding autos, they align with expectations. The Philly Fed business index is 44.3 versus an estimate of -5.0. The Euro STOXX 600 index increases by about 0.7%. The dollar and gold see gains, while crude oil and bitcoin decline. The U.S. 10-Year Treasury yield slightly increases to around 4.66%.

 

Global Markets Roundup: 16 January 2025


FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!


Today, global stock markets have shown a significant rally. The S&P 500 jumped by 1.83%, the Nasdaq 100 rose by 2.4%, and the Dow Jones went up by 1.65%. This upward trend is fueled by lower-than-expected core CPI data and strong bank earnings. Furthermore, Germany's DAX40 index increased by 0.39%, closing at €20,655.39, while the UK's UK100 index climbed by 1.21%, ending at 8,301.13. These changes reflect investor confidence in the current economic environment.


In the forex market, the USD showed resilience after a drop following the US CPI release, while the USDJPY remained strong overall. The EURUSD pair faced challenges due to ongoing Eurozone growth concerns, and the GBPUSD pair experienced mixed signals due to BoE rate cuts and trade uncertainties.


The commodities sector hit a two-year high, led by strong gains in energy and metals. Gold encountered early-year challenges from strong US yields but remains a favored investment due to geopolitical risks. Crude oil prices are range-bound amid oversupply risks and varying demand forecasts.


The market for soft commodities also saw significant movements today:

- Coffee: Prices increased due to supply disruption concerns in Brazil and rising demand from emerging markets. - Cocoa: Prices stayed stable, but potential supply disruptions in key producing countries are a concern, along with higher demand from the chocolate industry. - Wheat: Prices have been rising due to poor harvests in major wheat-producing regions, raising concerns about possible shortages. - Corn: Prices remained stable despite potential supply disruptions from adverse weather conditions, supported by increased demand from the bio-fuel industry.


Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.



 

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team

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