Amazon is steadier thanks to its high-margin AWS cloud business, while Apple may hold up better than most as Chinese stimulus boosts iPhone sales
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To some market participants first days of January may come as unattractive and even boring. In some places, echo of holiday season still can be noticed, but it seems there are cases (like Eurozone inflation and FOMC meeting minutes) market participants can think about while waiting for actual big ones. In the near future they are earnings, that could be real game-changers especially in times of spectacular decreases of Tesla, Apple and Amazon stock prices. Let's hear from Yohay Elam, Senior analyst at FXStreet.
Eurozone inflation has come out significantly lower than expected,
a fall driven by the plunge in energy costs. The new year has kicked off with exceptionally warm temperatures, promising further falls in headline inflation. While these developments may weaken the argument for further ECB tightening, the fall in gas prices may allow European to spend on other goods and especially services, solidifying core inflation and strengthening hawks supporting further aggressive rate hikes. All in all, any inflation-related fall in the euro will likely be short-lived.
In its' Meeting Minutes, the Fed may opt to push back against bond markets' pricing of rate cuts coming in H2 2023
Markets have been highly sensitive to economic releases in 2022, and the first week of 2023 is likely to be no exception. In its' Meeting Minutes, the Fed may opt to push back against bond markets' pricing of rate cuts coming in H2 2023. Such a scenario would follow previous guidance and may catch investors off guard, boosting the dollar. Nonfarm Payrolls has lost the top spot among market movers to inflation data. Nevertheless, any deviation from expectations is set to trigger considerable price action.
Read next: Exxon And Chevron Abandon The Global Market And Focus On The Americas| FXMAG.COM
Tech stocks have yet to find a bottom,
as uncertainty about the path of interest rates remains high. Tesla is under pressure due to Elon Musk's distractions and growing competition in the EV space. Amazon is steadier thanks to its high-margin AWS cloud business, while Apple may hold up better than most as Chinese stimulus boosts iPhone sales.
