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Tuesday Afternoon Report - Markets Update - 14 January 2025 - Stocks Retreat from Record Highs Amid Economic Data, Rising Yields, and Geopolitical Tensions

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

Updated: Jan 17


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Markets Update: The Dow shows a slight increase, the S&P 500 remains mostly stable, and the Nasdaq sees a decline. In the S&P, healthcare is the weakest sector, while utilities lead in gains. The dollar remains almost steady; gold experiences a modest rise; bitcoin jumps over 2%; crude oil falls by more than 1%. The yield on the U.S. 10-Year Treasury slightly dips to approximately 4.80%.

 

Global Markets Roundup: 14 January 2025


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


U.S. stocks have retreated from their record highs, prompting many investors to question whether they are approaching appealing buying levels. Nevertheless, according to one historical measure, the S&P 500 SPX remains rather costly. As of December 31, purchasing one unit of the S&P 500 required 208 hours of work, the highest since 1947 and well above historical averages. In Frankfurt, the DAX Index increased by 129 points or 0.64 percent on Tuesday. Siemens Energy (3.55%), Deutsche Bank (3.21%), and Commerzbank (2.27%) were the top gainers. The biggest losers included Symrise (-3.08%), Sartorius (-3.04%), and Bayer (-2.22%).


Earlier, following a holiday on Monday, the Japanese market was also reacting to the global equities downturn, which was triggered by strong U.S. jobs data on Friday. This data led market participants to consider the possibility that the Federal Reserve might not cut interest rates this year. In the meantime, Bank of Japan Deputy Governor Ryozo Himino, in a speech to Japanese business leaders, indicated that a rate hike could be considered at the conclusion of the next policy meeting on Jan. 24. The Nikkei index NI225 closed the day down 1.83% at 38,474.30, having dropped as much as 2.26% to 38,305.91 during the session, marking its lowest point since Dec. 2.

The broader Topix TOPIX declined by 1.16%.


In currencies, the dollar index DXY, which compares the U.S. currency to six other units, decreased by 0.04% to 109.37, just below the 26-month peak of 110.17 it reached on Monday. It climbed to 114.78 in October 2022, marking its highest point since 2002. Meanwhile, the euro EURUSD increased by 0.39% to $1.0286. It fell to $1.0177 on Monday, its lowest since November 2022. The euro declined by more than 6% in 2024 as investors worried about tariff threats and the differing monetary policies of the Fed and the European Central Bank. The British pound GBPUSD, down by 0.07% to $1.2194 against the dollar, also reached a 2-1/2-month low against the euro amid ongoing concerns about Britain's fiscal issues. The dollar increased by 0.37% against the yen USDJPY to 158.055, as traders prepared for next week's Bank of Japan policy meeting, where markets are anticipating a 57% chance of a rate hike. EURUSD | USDJPY | AUDUSD | DXY | NZDUSD


In commodities, WTI crude oil declined from a five-month peak on Tuesday after the U.S. imposed stricter sanctions on Russian oil exports, shifting focus to the effects of President-elect Trump's proposed tariffs on U.S. imports. WTI crude oil for February delivery dropped by US$1.32, closing at US$77.50 per barrel, while March Brent crude was last noted down by US$0.80 to US$80.21. Gold rose slightly by mid-afternoon on Tuesday as the dollar weakened following a U.S. inflation measure that increased less than anticipated last month. Meanwhile, a report indicated that the Trump Administration intends to gradually implement tariffs on U.S. imports. Gold for February delivery was recently up by US$4.70, reaching US$2,683.30 per ounce.


In agricultural commodities, raw sugar futures on ICE SB1! dropped 2.7% to 18.40 cents per lb, after reaching a 4-1/2-month low of 18.31 cents. New York cocoa futures CC1! increased by 1.6% to $11,106 a ton. London cocoa C1! climbed 1.1% to 8,943 pounds per ton. Arabica coffee KC1! decreased by 0.5% to $3.2430 per lb after hitting a 3-1/2 week high in the previous session. Robusta coffee RC2! declined 0.5% to $4,876 a ton. U.S. corn futures declined on Tuesday due to profit-taking after a tighter U.S. supply forecast pushed prices to their highest in a year, according to analysts. Soybeans pulled back from a multi-month peak as some predictions indicated beneficial rains in Argentina's crop areas, while wheat futures maintained modest gains. The Chicago Board of Trade's most-active corn futures ZC1! fell 2-1/4 cents to $4.74-1/4 per bushel after reaching $4.79-3/4, the highest level on a continuous chart for the most-active corn contract ZC1! since December 2023. CBOT benchmark soybeans ZS1! decreased by 8-3/4 cents to $10.44-1/4 per bushel, while wheat ZW1! increased by 1/2 cent to $5.45-1/2 per bushel. Corn futures retreated from high levels as farmers sold grain, taking advantage of a rally sparked by optimistic government crop reports released on Friday. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!


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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