Market Overview - Page 38

Gold has been rising steadily, reaching all-time highs and showing a 2.5% gain in the past week. This is in contrast to other markets which have been more unstable. Silver, while still below its previous peaks, has also been performing well recently.

The Bank of England has cut its key rate by 25 points to 4.5% and suggested further cuts may be on the way, leading to pressure on the British pound. Market expectations are now for three more rate cuts this year.

German industry is showing signs of growth and improvement, with industrial orders and production increasing, offering hope for the Eurozone economy.

The latest ADP jobs report shows continued strong growth in the US labour market, with 183K new jobs created in the private sector. While manufacturing continues to suffer, the overall economy is resilient.

The new week will focus on the US labour market and the UK rate decision. On Tuesday, 4 February, the focus is on the new US job opening statistics. The indicator’s fall over the past two years was viewed with.

Gold has hit record highs, moving into territory above 2800. Strong buying following the November-December correction suggests the end of the correction phase and the beginning of a new growth cycle. A breakout to new highs activates a Fibonacci expansion.

US indices opened the week with a sharp collapse. The news media unanimously attributed this decline to the strong results of DeepSeek, a Chinese competitor of OpenAI’s ChatGPT. The news that a strong network can be trained on obsolete Nvidia.

The Federal Reserve left its key rate unchanged in the 4.25%-4.50% range at the end of its January meeting after three consecutive 100 basis point cuts. The markets expected this decision, so their attention was focused on signalling the prospects.

The German Consumer Climate Index declined, reflecting negative trends in income expectations and the desire to buy, which can be attributed to rising inflation.

News of potential tariffs on imported goods has sparked speculative interest in the US dollar, leading to a rise in its value. However, there is uncertainty regarding the implementation of these tariffs and how they will affect the economy.

The decline in US and European indices was caused by investors exiting AI-related stocks after the release of China's high-quality DeepSeek-R1 AI model. Nvidia shares lost over 10%, putting pressure on the market and potentially leading to a 5-10% reduction in market capitalisation.

The new week will be packed with monetary policy news. Most observers expect the Bank of Canada to cut its key rate by 25 points to 3.0% on Wednesday, 29 January. The previous two cuts have been 50 pips each,.