The Bank Of Japan Kept Its Below-Zero Interest Rate, S&P 500 Failed To Extend Gains
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The Bank of Japan (BoJ) kept its below-zero interest rate and its faltering yield curve control policy unchanged. No-action sent the Japanese 10-year yield tumbling by up to 14 bp – that’s almost a 30% plunge. The dollar-yen spiked above the 131.50 level, losing more than 2.50% against the greenback.
Equities
In equities, confusion and lack of direction best described yesterday’s sentiment in the US.
US futures
US futures were pointing at a negative start, then turned higher in early trading as we heard a lot of talk about "green shoots" and "bright spots" in the economy when Chinese Vice Premier talked in Davos yesterday saying that he expects China's economy to return to normal this year.
S&P 500
The S&P 500 shortly traded above the 4000 level, but reality soon hit the fan with mixed earnings from Goldman and Morgan Stanley, and brought the top sellers in.
earnings
And the top sellers kept selling into the 4000 level to the end of the session. Finally, the index closed the session 0.20% lower, spot on the 2022’s down-trending channel top and above the critical 200-DMA.
The first set of earnings doesn’t support a sustainable move above that 200-DMA level.
Watch the full episode to find out more!
- 0:00 Intro
- 0:45 BoJ fights the hawks
- 3:00 FX update
- 5:29 S&P500 offered at 4000…
- 6:59 …as mixed earnings hammer optimism
- 7:59 Tesla better bid despite Jefferies PT cut
- 8:36 Meme traders refuse to buy Alibaba
Ipek Ozkardeskaya
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
#BoJ #YCC #JPY #JGB #USD #EUR #GBP #inflation #bank #earnings #Alibaba #Tesla #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary
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