Banque Bemo L : Daily Markets Brief

Daily Market Brief

January 3rd 2023

FOREIGN EXCHANGE MARKETS

(Sources: Bloomberg / Forexlive)

EURUSD

The EUR/USD pair has delivered a wild gyration in a 30-pips range above 1.0650 in the early Tokyo session. The major currency pair is gaining traction as investors are returning to trading arsenal after celebrating New Year. On Tuesday, the Euro is likely to dance to the tunes of German Harmonized Index of Consumer Prices (HICP) data. According to the consensus, the German HICP (Dec) will escalate to 11.8% vs. the former release of 11.3%. Meanwhile, the US Dollar Index (DXY) is expected to display volatile moves as investors are shifting their focus toward the release of thev(FOMC) minutes.

GBPUSD

The GBP/USD pair is displaying back-and-forth moves in a narrow range below the critical resistance of 1.2050 in the early Asian session. The Cable is expected to get back in action after a potential trigger as the market participants are still in a festive mood post-New Year celebrations.

USDJPY

The USD/JPY pair surrendered the psychological support of 130.00 in the early European session. The major has witnessed a steep fall after slipping below 130.50 in Tokyo amid an improvement in investors' risk appetite.

INTERNATIONAL EQUITY MARKETS

(Sources: Bloomberg / Reuters)

UNITED STATES OF AMERICA

U.S. stocks closed out 2022 lower on Friday, capping a year of sharp losses driven by aggressive interest rate hikes to curb inflation, recession fears, the Russia-Ukraine war and rising concerns over COVID cases in China. Wall St booked biggest annual percentage drop since 2008.

EUROPE

European shares rose in the first trading session of 2023 on Monday as euro zone manufacturing data suggested the worst had passed after a year marred by fears of a recession as central banks hiked rates globally. Croatia joins euro, Schengen area.

ASIA

China and Hong Kong stocks rose on Tuesday morning as investors bet on post- COVID era recovery in the world's second-biggest economy, amid dismal December factory activity data.

MUST READ

(Source: Bloomberg/ Forexlive)

Brutal Year Smashes Share Sales in IPOs and Follow-On Equity Raises

Initial public offerings in the US nose- dived from an all-time high, and even a late pickup in follow-on offerings couldn't erase their worst showing in almost three decades. As 2022 closes, 214 companies have priced IPOs to raise a combined $21.8 billion, not including secondary shares sold by investors in those listings, according to data compiled by Bloomberg. That compared with almost $335 billion in primary shares sold in 1,091 IPOs on US exchanges last year. "The buy side is starved for new places to allocate dollars in general, because the IPO market and to a lesser extent the follow-on market's been very tough, Zach Dombrowski, head of consumer ECM at William Blair, said in an interview. Gone were mega IPOs by growth-stage juggernauts like Rivian Automotive Inc., quashed by market volatility, poor returns and inflation, as well as the collateral damage of war and pandemic. Instead, small blank-check firms and research-phase biotech and pharmaceutical startups accounted for most of of the listings, shrinking the size of share sales to a third of last year's $309 million average. Follow-on offerings of primary shares by companies raising capital also declined overall but less precipitously, to $48 billion from $143 billion in 2021. That was still the lowest mark since $35 billion in 1995. Those offerings, about half as many as the previous year, were driven in part by companies moving quickly to capitalize on ephemeral market upticks.

Fx rates	Last	High	Low	% Daily	% Weekly	% YTD
EUR-USD	1.0658	1.0683	1.0650	-0.08	0.17	-0.44
GBP-USD	1.2065	1.2085	1.2035	0.16	0.33	-0.15
USD-JPY	129.89	131.40	129.52	-0.70	2.77	0.95
USD-CHF	0.9248	0.9272	0.9231	-0.14	0.45	-0.03
Commodities	Last	High	Low	% Daily	% Weekly	% YTD
Silver	24.39	24.53	23.89	1.84	2.78	1.84
Crude Oil	80.48	80.78	79.32	0.27	1.16	0.27
Bitcoin	16726.92	16772.17	16648.13	-0.14	0.80	1.13
Etherium	1216.97	1219.85	1211.45	-0.18	1.86	1.47
Period		1 M	3 M			12 M
EURIBOR		1.88	2.13			3.29
* USD LIBOR rates will be discontinued after June 30, 2023 and will be replaced by SOFR
Notes/Bonds		2 Y	10 Y			30 Y
US		4.43	3.87			3.96
BTP - BUND		0.51	2.12			2.23
GILTS		3.58	3.67			3.96
Index	Close	% Daily	% M	YTD	Futures	% Change
S&P	3839.50	-0.25	-5.70	0.00	3867.00	0.17
Nasdaq	10466.48	-0.11	-8.68	0.00	11039.00	0.16
DJ EuroStoxx50	3856.09	1.65	-3.06	1.65	3841.00	-0.59
FTSE 100	7451.74	-0.81	-1.38	0.00	7459.50	-0.09
CAC 40	6594.57	1.87	-2.19	1.87	6598.50	N/A
DAX	14069.26	1.05	-3.17	1.05	14067.00	-0.43
IBEX 35	8369.70	1.71	-0.15	1.71	8353.50	N/A
FTSE MIB	24158.28	1.90	-1.88	1.90	24130.00	N/A
Nikkei	26094.50	0.00	-6.06	0.00	25750.00	-1.27
Hang Seng	19781.41	1.92	7.96	1.92	20244.00	1.68
DFM General	3330.90	-0.09	0.12	-0.24	N/A	N/A
MSCI Tadawoul	10578.34	0.30	-2.26	0.95	N/A	N/A
	PRIOR_CLOSE_MID	CHG_PC CHG_PC CHG_PCT_
Leb. Mrkts	Closing Px	High	Low	% Daily	% Weekly	YTD
Solidere B	60.35	#N/A N/A	#N/A N/A	0.00	5.41	0.00
		MAIN WEEKLY EARNINGS		(Source: Nasdaq)
Company	Ticker	Market Cap	Date	Time	Estimate	Year Ago
Unifirst Corporatio	UNF US	$3.4 B	04-Jan-23	Pre-mkt	1.95	2.00
Constellation Bran	STZ US	$42.4 B	05-Jan-23	Pre-mkt	2.92	3.12
Walgreens Boots	WBA US	$34.1 B	05-Jan-23	Pre-mkt	1.14	1.68
Schnitzer Steel Ind	SCHN US	$868.3 M	05-Jan-23	Pre-mkt	-0.47	1.58
Greenbrier Compa	GBX US	$1.1 B	06-Jan-23	Pre-mkt	0.47	0.32
		ECONOMIC CALENDER		(Source: Forexlive)

(03-01-23) DE- Unemployment Change DEC; Unemployment Rate s.a. DEC

(03-01-23) GB- S&P Global/CIPS Manufacturing PMI DEC

(03-01-23) DE- Harmonized Index of Consumer Prices YoY DEC preliminar

(03-01-23) CA- S&P Global Manufacturing PMI DEC

(03-01-23) US- SS&P Global Manufacturing PMI DEC

(04-01-23) DE- S&P Global/BME Composite PMI DEC

(04-01-23) EA- S&P Global Composite PMI DEC

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