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Market Update January 13, 2023 By Daniel Ang

On Friday, January 13th, 2023, the equities market experienced volatility following the release of the Consumer Price Index (CPI) data. The S&P 500 initially dropped by 0.8%, but later rebounded. The data revealed that U.S consumer prices decreased in December for the first time in more than 2 and a half years, due to falling prices for gasoline and other goods, indicating a sustained downward trend in inflation. However, a separate report on the labor market showed that weekly initial jobless claims came in at 205,000, below expectations of 215,000. This has led many market participants to seek signs of weakness in the labor market as an indication of slowing inflation.

Market Update January 13, 2023 By Daniel Ang

The Dow Jones Industrial Average increased by 216.96 points (0.64%) to 34,189.97, the S&P 500 rose by 13.56 points (0.34%) to 3,983.17, and the Nasdaq Composite increased by 69.43 points (0.64%) to 11,001.11.

The Q4 earnings season for S&P 500 companies is set to begin tonight with the release of results from several major U.S. banks. Additionally, The Dollar Index hit its lowest level since early June at 102.07 before slightly recovering, and was last down 0.873%, with EUR/USD up 0.89% to 1.0851. USD/JPY fell 2.56% to 129.18, while GBP/USD was up 0.6% at 1.2215 on the day.

Crude oil prices also increased following the data release, with WTI crude settling at $$78.39 per barrel (1.27% increase) and Brent settling at $$84.03 (1.65% increase).

Gold prices also rose over 1%, hovering near the $1,900/oz after the US inflation data suggested a cooling off, leading to increased bets for slower rate hikes from the Federal Reserve. Spot gold jumped 1.1% to $1,896.30/oz, easing off from $1,901.40/oz – its highest since last May. COMEX gold futures settled up 1.1% at $1,898.80/oz. Spot silver jumped 1.8% to $23.85/oz.

In the cryptocurrency market, Bitcoin rose 6% to $19,005, adding $1,075 to its previous close, and is up 15.2% from the year’s low of $16,496. Ethereum also rose 3.06% to $1,432.8 overnight, adding $42.6 to its previous close. Ethereum is increasingly challenging Bitcoin as the dominant cryptocurrency, with its market share increasing from 10% in January 2021 to 20.5% currently. The upcoming “Merge” software upgrade for Ethereum, which could significantly reduce the energy usage of its blockchain, could potentially boost the price of Ethereum and increase its usage, but the crypto market remains unpredictable.

Daniel has extensive experience in the commodity industry, with over 35 years of expertise to share with those in trading, entrepreneurship, business, and finance. He began his career in 1985 and has held positions such as a gold dealer and futures trader at Standard Chartered Bank. He is also the founder of Traders Academy International. Follow him for valuable insights and information, and for success in your trading endeavors.

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