Market Update January 3, 2023 by Daniel Ang

We’ve got a packed daily market update for you today, with all the latest news on stocks, bonds, currencies, and cryptocurrencies. Let’s dive in:

👉 Markets in the US, UK, Hong Kong, Ireland, Japan, Singapore, and Canada were closed yesterday due to the New Year’s Day holiday. Elsewhere, stocks inched higher, European bond yields dropped, and the dollar held steady in light trading.

👉 The S&P Global manufacturing Purchasing Managers’ Index (PMI) rose to 47.8 in December, up from November’s 47.1, indicating a potential rebound in optimism among Eurozone factory managers.

👉 German government bond yields fell 12 basis points to 2.44% yesterday, following hawkish signals from the European Central Bank (ECB). ECB President Christine Lagarde said that Eurozone wages are growing faster than previously thought, and the central bank must prevent this from driving up already high inflation.

👉 In foreign exchange markets, the dollar gained almost 0.2% against a basket of major currencies. The Dollar Index rose 0.14% to 103.63, off its six-month low of 103.38. Meanwhile, both GBP/USD and EUR/USD fell 0.4% and 0.2% respectively. USD/JPY dropped 0.25% to 130.76, following its lowest levels since August.

👉 Oil prices are set to rise in 2023 due to slowing growth in the US, EU, and China, which is threatening demand and offsetting the impact of supply shortfalls caused by sanctions on Russia, according to a Reuters poll.

👉 In the cryptocurrency market, Bitcoin rose 0.6% to around $16,700 in light trading, while altcoins mostly ended the day in the green. Ether followed a similar path, sticking to its two-week range between $1,150 and $1,230. Other major altcoins, including XRP and MATIC, rose more than 4% and 3% respectively.

👉 SOL, the native cryptocurrency of the Solana blockchain platform, continued its surge that began last week after Ethereum co-founder Vitalik Buterin tweeted positively about the protocol. SOL was recently up 13%, although it has lost 93% of its value over the past year, due to its involvement with the collapsed Terra ecosystem and FTX.

This market update was brought to us by Daniel Ang, a career commodity trader with over 35 years of experience in the field. In 2012, he founded Traders Academy International, and in 2018, he was appointed as an external, independent trainer/speaker for the Asia Pacific region by the Chicago Mercantile Exchange Group. In 2020, he wrote his first book, “The Accidental Trader.”

We hope you enjoyed this entertaining yet educational daily market update. As always, stay tuned for more updates and stay safe out there!