US stock markets edge higher yet AI worries are maintained
US equities tended to edge higher in today’s premarket hours. On the one hand, the slower than expected US CPI rates for January, as they were released on Friday, tended to enhance market expectations for aa faster easing of the Fed’s monetary policy, which tended to be a plus for US equity markets, yet on the flip side, market worries for the oversized investments in AI, announced by various Tech companies, tend to intensify, weighing on US stock markets.
Being more specific, we note reports highlighting that Warner Bros seems to be reconsidering the buy out bid of Paramount, which could provide some support for Paramount yet at the same time it could weigh on the losing part, that being Netflix.
Xlence Research Team opinion
We expect a correction higher for US stock markets, yet market worries for AI investments may continue to weigh on US equities on a fundamental level.
Oil prices stabilise
Oil prices seem to have stabilised somewhat after Thursday’s drop. Oil market focus, on a fundamental level, seems to be shifting towards the developments in the US-Iranian relationships.
Negotiations between the two, are to restart about Iran’s nuclear program, and Iran is reported to be ready to offer mining, energy and aircraft deals to the US in order to reach some common ground.
Xlence Research Team opinion
In our opinion, should we see progress being achieved in the second round of US-Iran negotiations we may see oil prices retreating as market worries for the supply side of the international oil market may ease.
USD gains some ground in the FX market
The USD edged higher against its counterparts in the FX market in today’s Asian session, despite the US CPI rates for January coming in slower than expected.
North of the US border we highlight the release of Canada’s CPI rates for January, just before the American session begins, which in turn may shake the Loonie. In tomorrow’s Asian session we highlight from Australia, the release of RBA’s last meeting minutes, and given the hawkish predisposition of the market for RBA’s intentions, a possibly hawkish tone in the document could provide fresh bullish tendencies for the Aussie.
Last but not least we note the weakening of the JPY, after a week in the greens for the Yen and the release of a substantially slower GDP rate for Q4 25 for Japan.
Xlence Research Team opinion
In the week we highlight the release from the US of the Fed’s last meeting minutes on Wednesday, yet today should Canadian CPI rates accelerate we may see Loonie traders being caught by surprise and thus could provide some support for the CAD.
Bitcoin remains stable for now
Bitcoin’s price remained below the threshold of $70k, despite some attempts to break above the level.
The market sentiment seems to continue to be bearish and its characteristic that the crypto king’s price action has failed to stage a rise.
The risk-off sentiment in the market seems to be weighing on a fundamental level, on the cryptocurrency currently.
Xlence Research Team opinion
For the time being we tend to adopt a bias for a sideways motion of the cryptocurrency, yet at the same time we are issuing a warning for possible bearish tendencies.
Disclaimer: This information is not considered investment advice or an investment recommendation, but instead a marketing communication.
