As the final week of January begins, Monday, 27 January 2025, will set the tone with key economic data and corporate earnings in focus.
Investors will assess fresh growth indicators and market-moving developments as the month comes to a close.
KEY INDICATORS
Corporate earnings spotlight
Tech and consumer discretionary sectors: Key earnings reports from major tech firms and consumer discretionary companies are expected, offering insights into Q4 performance and forward guidance amid shifting economic conditions.
Global market signals
China’s industrial profits: December’s industrial profits data from China will be closely monitored as investors assess the health of the Chinese economy and its impact on global trade and commodities.
Eurozone market updates: Early trading in Europe may reflect weekend geopolitical developments or policy-related news influencing market sentiment.
Central bank commentary
Any remarks from Federal Reserve officials will be scrutinised for hints about future policy moves, particularly as inflation and growth dynamics continue to dominate market discussions.
MARKET MOVERS
XAU/USD
Possible long preference Long positions above 2761.53 with targets at 2771.77 & 2785.36 in extension. Alternative scenario Below 2745.74 look for further downside with 2736.06 & 2725.49 as targets. The RSI is bullish and calls for further upside.
Gold prices retreat on strong dollar amid Trump tariff uncertainty
Gold prices fell in Asian trading on Monday, retreating from last week’s sharp gains, as the US dollar strengthened following President Donald Trump’s brief imposition of tariffs on Colombia.
Spot gold declined 0.7% to USD 2,752.09 per ounce.
Gold futures expiring in February dropped 0.8% to USD 2,783.22 an ounce by 6:21 AM GMT.
The yellow metal had gained nearly 3% last week on Trump’s rate cut demand and expectations of the gradual imposition of US tariffs.
Trump imposed a 25% tariff on Colombian imports overnight after Colombia’s President Gustavo Petro blocked US deportation flights.
The US Dollar Index rose 0.3% in Asian trading on Monday, after recording its worst weekly fall in two months.
Crude Oil WTI
Possible long preference Long positions above 74.95 with targets at 75.36 & 76.01 in extension. Alternative scenario Below 73.99 look for further downside with 73.63 & 72.96 as targets. The RSI is bullish and calls for further upside.
Oil prices post weekly drop as Trump touts energy policy, threatens tariffs
Oil prices were steady on Friday but posted a weekly decline, ending four straight weeks of gains, after US President Donald Trump announced sweeping plans to boost domestic production while demanding that OPEC move to lower crude prices.
Brent crude futures gained 21 cents, or 0.27%, to close at USD 78.50 a barrel.
US West Texas Intermediate crude (WTI) gained 4 cents, or 0.05%, to settle at USD 74.66 a barrel.
Brent has lost 2.83% this week, while WTI was down 4.13%.
Trump on Friday reiterated his call for the Organisation of the Petroleum Exporting Countries to cut oil prices to hurt oil-rich Russia’s finances and help bring an end to the war in Ukraine.
Chevron said on Friday it had started production at a USD 48 billion expansion of the giant Tengiz oilfield, which will bring its output to around 1% of global crude supply.
This could further pressure OPEC’s efforts over the last few years to limit production.
TODAY’S NEWS HEADLINES
Asia-Pacific markets track Wall Street gains as Trump pushes for rate cuts
Asia-Pacific markets climbed on Friday after the S&P 500 hit record highs overnight, as US President Donald Trump called for lower interest rates and cheaper oil prices.
The Bank of Japan raised its policy rate by 25 basis points to 0.5%—the highest since 2008 and in line with economists’ expectations.
Following the decision, the Japanese yen weakened marginally to trade at 155.18 against the dollar.
Earlier on Friday, Japan reported that its core inflation rate rose to a 16-month high of 3% in December, year-on-year.
The country’s Nikkei 225 and Topix erased earlier gains to close flat at 39,931.98 and 2,751.04, respectively.
South Korea’s Kospi advanced 0.85% to end the day at 2,536.80, while the Kosdaq rose 0.65% to close at 728.74.
Australia’s S&P/ASX 200 rose for a third straight week, ending the day up 0.36% at 8,408.9.
Mainland China’s CS1300 benchmark rose 0.77% to end the day at 3,832.86.
Hong Kong’s Hang Seng index was up 1.67% as of its last hour of trade.
Pound to Canadian dollar week ahead: 1.81 and BoC decision eyed
The Canadian dollar is under pressure against the British pound. The midweek Bank of Canada interest rate decision will prove to be the week’s calendar highlight.
The Pound to Canadian Dollar exchange rate (GBPCAD) is trending higher again and looks set to challenge the 1.81 interim resistance target in the coming days.
Should Trump proceed with a 25% tariff, Deutsche Bank thinks “the hit to Canadian aggregate demand will be large and pull Canada into recession.”
Siemens Energy down 19% as European stocks sell off amid AI concerns
European markets were in negative territory on Monday as investors in the region reacted to a potential AI breakthrough out of China.
The Stoxx 600 index was 0.4% lower at 1:34 p.m. London time.
Sectors were mixed, with utilities up 1.4% as technology shares plunged 4.2%.
