Daily Market Outlook, January 26, 2023 Asian Markets Back Online & In Buoyant Spirits With Hong Kong Scaling 7 Month HighsAsian markets are trading with a mixed tone, the standout exception is the Hong Kong market which has opened with a strong risk on posture, as the Hang Seng printed fresh seven month highs. The handover from Wall Street was mixed, however all the major indices staged significant intraday reversals from lows to close broadly unchanged on the session, overnight Tesla earnings provided support for bulls as earnings and revenues topped estimates, although margins contracted, Tesla shares were seen up 5.5% in post market trade. With no econ data of note for European trading, investor focus shifts to the US session, where US Q4 GDP is set to be released this afternoon. Markets expect the print to confirm a second successive quarter of growth reversing declines witnessed in the first half of 2022, softness seen in some December inputs suggests that growth may be lower than previously expected, however, growth is expected to confirm a 2.2-2.6% annualised uptick quarter over quarter. The Fed is deemed to still view this as a hotter than wanted levels of activity, the policy response to this level of growth will likely see the FOMC maintain a cautious tone at the Feb 1 meeting, with markets fully pricing a 0.25bps move, any upside surprise to the data would like see markets rapidly repricing a 50bps move, the data comes during the Fed black out period so markets wont get any response from Fed officials. Other US data of note comes in the form of weekly jobless claims, expected show a small uptick, signalling slight softness in the employment outlook, another round of housing data is expected to confirm continued pressure in the sector with new homes sales believed to cool further in December dropping from 640k to 617kMarkets-wise, European bourses have opened on the front foot, buoyed by Tesla earnings and the upbeat outlook provided by Tesla CEO Musk, robust earnings out of STMicroelectronics were well received, helping cement the constructive opening to European trade with the FTSE & Eurostoxx in the green. US equity futures are also in positive territory as the Dollar remains pressured below the 102 level, supporting EUR and GBP. Crude continues to cling to the $80 handle with Gold closing on the 1950 target.Overnight News of NoteBitcoin Tops $23.7K In Wednesday Comeback – CoinDeskAsian Shares Scale Fresh 7-Month High As Hong Kong Trade ResumesChina Stocks Rally In Hong Kong As Holiday Spending RecoversBoJ Policymakers Divided On Wage, Inflation Outlook, Jan Opinions ShowsFear of BOJ Turning Hawkish Spurs 94% Jump In Shorter Bond SalesUS Economic Growth Set To Have Slowed In Fourth Quarter Of 2022Housing Demand Climbs As US Market Starts To Show Signs Of LifeUS And Germany To Send Main Battle Tanks To UkraineBoC’s Macklem Says He Is ‘Not Even Thinking’ Of Cutting RatesUK Business Confidence Drops To Lowest Since Financial CrisisDollar Near Eight-Month Low Ahead Of Central Bank MeetingsOil Edges Higher On Outlook For Chinese Demand And Weaker DollarChevron To Buy Back $75 Billion In Stock After Record ProfitsTesla Seeks To Boost Output Quickly As Profit Beats EstimatesIBM To Cut About 3,900 Workers, Still Hiring In ‘Higher Growth’ AreasDOT Probes Southwest Airlines Scheduling After Holiday-Travel MeltdownChina Stocks Rally In Hong Kong As Holiday Spending Recovers(Sourced from Bloomberg, Reuters and other reliable financial news outlets)Options Expiration For the New York Cut 10am EST(BOLD expiries with a value of a Billion+ more magnetic if price is within the daily trading range)USDJPY 130.00USDCHF .9795Technical & Trade ViewsSP500 Bias: Intraday Bullish Above Bearish Below 3985Primary support is 3885Primary objective is 4065Below 3840 opens 380020 Day VWAP bullish, 5 Day VWAP bullishEURUSD Bias: Intraday Bullish Above Bearish below 1.0835Primary support is 1.0750Primary objective is 1.10Below 1.0730 opens 1.061020 Day VWAP bullish, 5 Day VWAP bullishGBPUSD Bias: Intraday Bullish Above Bearish below 1.2340Primary support is 1.2180Primary objective 1.2460Below 1.2150 opens 1.210020 Day VWAP bullish, 5 Day VWAP bullishUSDJPY Bias: Intraday Bullish above Bearish Below 131.50Primary resistance is 132.30Primary objective is 125.00Above 133.00 opens 135.0020 Day VWAP bearish, 5 Day VWAP bullishAUDUSD Bias: Intraday Bullish Above Bearish below .7060Primary support is .6950Primary objective is .7250Below .6930 opens .687020 Day VWAP bullish, 5 Day bullish VWAPBTCUSD Intraday Bias: Bullish Above Bearish below 22500Primary support 20300Primary objective is 25000Below 20200 opens 1940020 Day VWAP bullish, 5 Day VWAP bullish
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