Tariffs continue to dominate financial markets, China responds
It will be another day marked by trade skirmishes over US tariffs. Yesterday Mexico’s opening, today China’s response in the form of new tariffs on oil and coal. Today is also a day of important quarterly reports (Google and AMD and PayPal).
In the intermarket dashboards we observe the recovery of the VIX against the S&P500 (volatility is the great protagonist of these days) and the stalling of the Gold/Dollar strength ratio. As far as the S&P500 is concerned, we observe the break of the 10-day average and the approach to the 50-day average, this will be a first test to understand how much the US list can withstand the current stresses.
On the macroeconomic front the day offers few insights. In the US, the jobless claims report for the month of December and, again for the month of December 2024, the industrial orders figure will be released.
As far as quarterly reports are concerned, the accounts of Google, PayPal and AMD, among others, are expected today. We will see whether the results will bring some ‘calm’ to the US stock markets.
Our forecast analysis indicates an interlocutory day for equities, with essentially no operational buying indications. Indications of a trading range phase for US treasury yields. The reliability of the forecasts is severely affected by the current situation in the financial markets.
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NOTES AND WARNINGS
Analysis automatically generated by kbmeter.com. Analysis date: 4 February 2025 - 7:56 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
