Weekly

On January 19th

Today's range

Gold held at the $1,900 level yesterday as hawkish comments from Fed officials weighed on growth. Resistance to the new supply zone is strong and may take some volatility to break through. Today's recommended range is $1,893 to $1,920.

With Nasdaq holding its ground overnight, mobile gaming stocks in the Hong Kong tech sector also made a show of it yesterday as Tencent and NetEase gained new title titles from the National Press and Publication Administration. The news boosted a number of mobile gaming stocks by between 2 and 14 per cent, helping Hong Kong stocks to complete a rally yesterday. The Hang Seng Index opened more than 60 points higher and briefly fell 150 points before recovering to close near its session high at 21,677, up 100 points or 0.47 percent.

Eurostat said consumer prices in the euro zone fell more sharply than expected in December, with the latest figures showing a negative growth of 0.4%, and media reports that European Central Bank officials are starting to consider a slower pace of interest rate increases. European stock markets have been looking for a new direction in recent days after Britain's consumer price index showed inflation in the euro zone was coming under control, as expected. Germany's DAX was down 0.03%; France's CAC in Paris was up 0.09 percent, while Britain's FTSE 100 was down 0.26 percent.

The latest drop in U.S. consumer prices helped Wall Street open higher, but retail sales fell 1.1 percent in December on fears of a continued slowdown in the U.S. economy and further downbeat news of job cuts, including plans by giant Microsoft to lay off about 10,000 workers. All three major Wall Street indexes fell more than 1 percent. The Dow Jones Industrial average closed down 1.81 percent, the S&P 500 down 1.56 percent and the Nasdaq composite up 1.24 percent.

A number of business leaders at the World Economic Forum in Davos, Switzerland, expressed concerns about global inflation and central bank tightening monetary policy impact on the market, the bearish market infected investors, and two major US banks reported disappointing results, while the New York Fed manufacturing index hit the worst since May 2020, the Dow Jones Industrial average closed down 1.31 percent. The S&P 500 also fell 0.18 percent, while the Nasdaq composite gained 0.14 percent.

Fed officials struck another hawkish tone, with St. Louis President James Bullard saying the central bank should not delay raising its benchmark interest rate and calling for an outright increase beyond 5 percent. Separately, Cleveland Fed President Loretta Mester welcomed action to curb inflation, while another Fed official, James George, said the central bank must restore price stability. The hawkish message weighed on gold, which traded as high as $1,925.9 and as low as $1,896.8 before closing at $1,904.5, down $4.2.

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