Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

APAC Week Ahead: Will tech earnings continue to buoy Wall Street?

Tesla

Wall Street’s rally lost steam, with both Dow and S&P 500 finishing the week lower. However, the tech-heavy index, Nasdaq again outperformed both major US and & EU markets as optimism towards a slowdown in Fed’s rate hikes and tech earnings continued to fuel the dip-buys. At the same time, Asian markets rise further amid China’s reopening optimism and strong commodity prices, suggesting investment funds may have been shifting to more policy-supported regions.

This week, the Q4 US GDP will be in the spotlight for investors to gauge the health of the world’s largest economy. Plus, both Microsoft and Tesla will report their Q4 earnings, which will further drive the market’s movements.

Click to enlarge the table

What are we watching?

  • Australian markets pop: The ASX200 rose for the third straight week, with the Australian miner’s stocks, such as BHP and Rio Tino leading gains amid strong output numbers and positive guidance. The index is only 2% from its all-time high seen in April 2022.
  • Gold extends gains: Gold futures rose for the fourth consecutive week, to a 9-month high. The precious metal consolidates above key support of 1,900, heading to the next potential long target of 1,976.
  • Crude oil tops 80: Oil markets continued to rise amid an improved demand outlook due to China’s reopening, which outweighs recession fears as cooled US inflation strengthened the odds for a slowdown in rate hikes by the Fed.
  • Bitcoin jumps: Bitcoin jumped 6%, to above 22,000 on Friday and popped above 23,000 at the weekend, to the highest seen in August 2022, while Ethereum surged 16% to above 1,600 last week as risk-on prevailed markets broadly.  

Economic Calendar (23 Jan – 27 Jan) All time is in Australian AEST

Click to enlarge the table


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.