Midweek trading on Wednesday, 5 February 2025, will be marked by key economic reports and ongoing corporate earnings updates. Markets will be looking for signals on employment trends, inflation, and global economic health as investors assess the outlook for growth and central bank actions.
KEY INDICATORS
US labour market data
Caixin ADP Employment Report (January): This private-sector jobs report will give an early indication of labour market strength ahead of the more widely watched Non-Farm Payrolls report later in the week.
Investors will focus on job creation, wage growth, and sector-specific trends.
Energy markets
Crude oil price movements: Energy markets will remain in focus as crude oil prices react to geopolitical developments, OPEC+ decisions, and supply-demand forecasts.
Volatility in oil could impact energy stocks and broader market sentiment.
Eurozone economic indicators
Eurozone Services PMI (January): The final version of the PMI for the services sector will provide insights into growth or contraction in Europe’s service industries, reflecting consumer and business confidence.
MARKET MOVERS
XAU/USD
Possible long preference Long positions above 2908.05 with targets at 2891.75 & 2908.05 in extension. Alternative scenario Below 2857.60 look for further downside with 2843.45 & 2831.15 as targets. The RSI is bullish and calls for further advance.
US crude oil inventories up last week
The American Petroleum Institute (API) on Tuesday reported an increase of 5.025 million barrels of crude oil in US inventories for the week ending 31 January.
Analysts expect a rise of 3.170 million barrels for this week.
The API reported a surge of 2.860 million barrels in the previous week.
Oil prices settled mixed on Tuesday.
The West Texas Intermediate for March delivery dropped 46 cents, or 0.63 per cent, to settle at USD 72.7 a barrel on the New York Mercantile Exchange.
Brent crude for April delivery went up 24 cents, or 0.32 per cent, to settle at USD 76.2 a barrel on the London ICE Futures Exchange.
United States API crude oil stock change
US crude oil inventories jumped by 5.025 million barrels for the week ending 31 January 2025, following a 2.86 million barrel build in the previous week, according to the American Petroleum Institute’s Weekly Statistical Bulletin.
This marked the third consecutive week of inventory gains, after five weeks of declines, surpassing expectations of a 3.17 million barrel build.
Crude Oil WTI
Possible long preference Long positions above 72.64 with targets at 73.18 & 73.88 in extension. Alternative scenario Below 71.52 look for further downside with 70.65 & 69.96 as targets. A support base at 71.60 has formed and has allowed for a temporary stabilisation.
TODAY’S NEWS HEADLINES
European markets mixed as earnings stay in focus; Santander up 7.5%
European markets traded in mixed territory on Wednesday, as investors continued to monitor corporate earnings coming out of the region.
The pan-European Stoxx 600 hovered just below the flatline at 10:28 a.m. London time, with most sectors and all major bourses trading in negative territory.
Asia-Pacific markets were mixed overnight, with all eyes on China after it resumed trading following the Lunar New Year holidays.
Gold rises to all-time high on Sino-US tariff war
Gold prices hit a record high on Wednesday, bolstered by fears of a new trade war between the United States and China after Beijing slapped tariffs on US imports in response to new US duties on Chinese goods.
Spot gold was up 0.2% at USD 2,848.69 per ounce, as of 0253 GMT, after hitting a record high of USD 2,853.97 earlier in the session.
US gold futures gained 0.2% to USD 2,879.70.
Spot silver rose 0.2% to USD 32.15 per ounce.
Platinum edged 0.3% higher to USD 966.95.
Palladium fell 0.9% to USD 981.75.
Asia-Pacific markets rise as Wall Street overlooks US-China trade spat
Asia-Pacific markets mostly rose on Wednesday after Wall Street rose overnight, shrugging off Trump tariffs and China’s retaliatory measures.
Mainland China’s CSI 300 Index started the day up but reversed course to fall 0.58% to close at 3,795.08.
China’s Caixin Services PMI came in at 51.0 in January, compared with December’s 52.2 reading, showing a slowdown in the country’s services activity.
Hong Kong’s Hang Seng index was down 0.97% in its final hour of trade.
Japan’s benchmark Nikkei 225 rose 0.09% to close at 38,831.48, while the broader Topix index gained 0.27% to close at 2,745.41.
South Korea’s Kospi rose 1.11% to close at 2,509.27 and the small-cap Kosdaq gained 1.54% to close at 730.98.
