Today’s session is pivotal in shaping the market’s direction for the remainder of the week. Stay tuned and stay informed.
KEY INDICATORS
US labour market spotlight
- Today’s focus is on the ADP Employment Report for December, a critical indicator ahead of Friday’s Non-Farm Payrolls release.
- This report will provide insights into private-sector job growth and its implications for Federal Reserve policy in the coming months.
Global market sentiment
- Asia: Asian markets ended mostly higher, buoyed by optimism around China’s trade data, which showed signs of recovery despite lingering global headwinds.
- Europe: European stocks opened mixed as investors assessed new inflation data and corporate updates ahead of tomorrow’s European Central Bank (ECB) meeting minutes.
Oil prices and energy markets
- Crude oil prices are holding steady after recent gains, supported by supply constraints and signals of demand recovery.
- Energy stocks remain in focus as the latest US crude inventory report is due today.
Possible short preference
Short positions below 21058.78 with targets at 20973.11 & 20905.80 in extension.
Alternative scenario
Above 21209.73 look for further upside with 21268.89 & 21317.84 as targets.
The RSI is below its neutrality area at 50%, falling the most as it shed 1.89%, or 375 points.
Inflation fears drag down US markets
- US stocks fell, and Treasury yields rose on Tuesday as the ISM Services Index showed a significant jump in prices for December.
- Asia-Pacific markets traded mixed on Wednesday. South Korea’s Kospi rose by 1.3%, boosted by shares of Samsung Electronics, which climbed around 3.6%, even as the company forecast that its fourth-quarter profits would fall short of LSEG expectations.- The price index for December’s ISM report jumped to 64.4% from 58.2% in November, representing an increase of more than 10%.- It’s the first time since January 2024 that the reading has come in above 60%.