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Daily Market Outlook, January 27, 2023 Tesla Leads The Charge, Asian Markets Follow Wall Street’s Lead HigherAsian markets are set to end the week in the green taking their lead from robust trade on Wall Street, led by tech darling Tesla that ended the day higher by nearly 11% taking the Nasdaq higher by 2%European investors are heading into the weekend with a one eye on next week’s data slate with Q4 GDP estimates for major economies including Germany, France & Italy, markets will take some encouragement from the Spanish GDP released this morning printing 0.2% above the 0.1% expected, the belief is that the Eurozone on a whole may sidestep contraction for Q4 ‘22. No tier one data on the docket for the UK today. Chancellor Jeremy Hunt is set to speak at Bloomberg’s European HQ on achieving growth in key sectors including digital technology, green industries and life sciences, as well as setting out a long-term plan to improve productivity. Investors will be more interested in next week’s monetary policy update from the Bank of England, with the European Central Bank and the Federal Reserve also on deck next week, foreign exchange investors will be looking for confirmation of the nascent policy divergence between a more hawkish ECB and a Fed close to a pause if not a plateau in their rate cycle.In the US, the Federal Reserve’s preferred inflation indicator is due for release, the December PCE deflator is expected to confirm the message from the CPI data that both headline and core inflation continued to retreat last month. Market watchers are looking for the PCE deflator to fall to 5.0% from 5.5% and the core PCE deflator to pullback to 4.4% from 4.7%. Personal spending is also expected to have fallen. The data is set to underpin the market narrative that inflation has peaked stateside and is now on the path of decline suggesting economic growth is also slowing, this should mean that US rate cycle is also in the mature phase if not close to termination. The final release of the University of Michigan’s US consumer sentiment survey for January is likely unchanged from the flash reading of 64.6, up from 59.7 in December. The preliminary reading also implied inflation expectations falling to 4.0%, the lowest since April 2021 on an annualised basis.Markets-wise, European bourses have opened flat on the session, tech stalwart Intel failed to excite investors post market announcing an earnings miss and offering one of its most dire outlooks for the year ahead. Somewhat counter intuitively, European luxury names have posted robust earnings and positive forward guidance with LVMH announcing record profits and raising their dividend. US equity futures are in negative territory as the Dollar remains pressured below the 102 level, supporting EUR and GBP. Crude remains supported above the $80 handle with Gold continuing to trade above the pivotal 1900 level..Overnight News of NoteJapan, Netherlands Agree To Join US In China Chip CurbsConsumer Inflation In Japan’s Capital Hits Near 42-Year HighJapan PM Can’t Rule Out Return Of Deflation Despite Price SpikeBoJ Deploys Funds-Supply Tool Again As Yields Creep UpHouse GOP Leaders Consider Extending Debt Limit To Sept. 30Dollar Drops VS Yen, Near 9-Mth Low To Euro On Central Bank BetsOil Edges Higher As Slowdown Concerns Vie With China OptimismIntel Misses Wall Street Expectations, Q1 Guidance DisappointsVisa Revenue Growth Slows More As Tough Economy Sobers SpendingChip Stocks Extend Gains In Asia, Defying Intel’s Sales Warning(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)EURUSD 1.07, 1.0825USDJPY 126.50, 128.80USDCHF .9130USDCAD 1.3150AUDUSD .6650EURGBP .8800Technical & Trade ViewsSP500 Bias: Intraday Bullish Above Bearish Below 3990Primary 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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