Market Update January 16, 2023 By Daniel Ang

The financial markets experienced positive growth last Friday, with the S&P 500 and Nasdaq Composite reaching their highest levels in a month. The upward trend was largely attributed to strong quarterly results from US banks and an improvement in consumer sentiment as reported by the University of Michigan's survey.

Market Update January 16, 2023 By Daniel Ang

The Dow Jones Industrial Average closed at 34,302.61, an increase of 112.64 points or 0.33%. The S&P 500 gained 15.92 points, or 0.40%, closing at 3,999.09. The Nasdaq Composite closed at 11,079.16, an increase of 78.05 points or 0.71%. These figures signify the highest levels for these indices since December 13 and 14, respectively.

In the foreign exchange market, the Japanese Yen continued to strengthen on speculation that the Bank of Japan may revise its monetary policy. The USD, on the other hand, saw an uptick against other major currencies, rising off of a seven-month low. The USD/JPY exchange rate fell 1.06% to 127.92 yen, representing a 2.4% increase from the previous Thursday's close.

Commodity markets also saw positive growth, with the price of oil increasing on softening inflation in the US. WTI crude for February delivery closed at $80.07, an increase of 8.4% for the week. Brent crude for March delivery closed at $85.49, also experiencing an 8.5% increase for the week.

In the precious metals market, gold reached a nine-month high, approaching the key resistance level of $1,950 per ounce. Gold for February delivery on COMEX closed at $1,923.35 per ounce, an increase of $22.90 or 1.2%. The spot price of gold settled at $1,920.13, an increase of $23.22 or 1.2%.

The cryptocurrency market also saw significant growth, with Bitcoin crossing the $20,000 mark for the first time since November 8, 2022. Bitcoin rose 5.58% to $21,229, an increase of $1,286 from its Friday close. Similarly, Ether saw a 7% increase, closing at $1,598.45.

Overall, the market trend was largely positive, with various factors such as strong earnings reports and softening inflation contributing to the upward movement. It remains to be seen how these trends will continue to develop in the coming weeks.

Daniel has an extensive background in the commodity industry, boasting over 35 years of experience in trading, entrepreneurship, business and finance. He began his professional journey in 1985 and has held prominent 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, information and for success in your trading endeavors.