We’ve got another exciting daily market update for you this Thursday, January 5, 2023, so let’s dive right in.
U.S. stocks eased off session highs after the Federal Reserve released minutes from its December meeting that revealed concerns about any market “misperception” that its commitment to fighting inflation was flagging. Despite this, U.S. stocks still ended the day up, with the S&P 500 climbing 0.75%, the Dow Jones Industrial Average rising 0.4%, and the Nasdaq Composite climbing 0.7%. This recovery in stocks showed optimism about the two main factors that made 2022 a difficult year for investors: rate hikes to fight inflation and China’s anti-COVID measures.
However, other assets saw some jitters, with crude oil prices falling sharply due to concerns about global demand and signs of weakening activity in the major engines of global growth: the U.S., Europe, and China. WTI crude fell 4.85% to $73.2 per barrel, while Brent was at $78.07, down 4.9% on the day. On the other hand, hopes for a less aggressive Fed boosted gold prices, with spot prices hitting $1,856.57/oz – its highest since mid-June. Silver fell 1% to $23.74/oz, platinum was down 0.6% to $1,077.03, while palladium jumped 5.4% to $1,802.13.
In foreign exchange markets, the Dollar Index fell 0.45% as commodities currencies like the Australian Dollar gained and the Euro rose on the back of positive French and German inflation data. GBP/USD rose 0.75% to 1.20575, while EUR/USD rose 0.54% to 1.06050, coming off a three-week low of 1.0519 the previous day. USD/JPY strengthened to 132.500.
In the world of cryptocurrencies, Bitcoin and Ether rose in Asia yesterday, along with all other top 10 non-stablecoin tokens. Bitcoin edged up 1.14% overnight, while Ether gained 3.52%. Both BTC and ETH are currently around $16,867 and $1,257 in early Asia trading this morning. Solana, currently the 10th largest non-stablecoin token by market capitalization, surged 18.45% to change hands at $14.12 in Asia, driven mainly by the launch of Bonk, a Solana-focused dog-themed coin that airdropped half of its token supply last week. However, profit-taking saw its price slide back below $13.50 in New York, and it is currently trading at $13.35. Cardano strengthened 5.93% and is currently trading at $0.2677, while BNB gained 5.06% overnight to trade at $258.46 in early Asia this morning.
This market update was brought to you by expert trader Daniel Ang. With over 35 years of experience in the industry, including working as a gold dealer and futures trader at Standard Chartered Bank and founding Traders Academy International, Daniel brings a wealth of knowledge to our daily updates. Stay tuned for more insights from Daniel and the rest of our team. Happy trading!